Published on 6/24/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $18.91 million callable contingent income securities on indexes
By William Gullotti
Buffalo, N.Y., June 24 – Morgan Stanley Finance LLC sold $18.91 million of callable contingent income securities due June 21, 2024 tied to the worst performing of the Nasdaq-100 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 13.6% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on every trading day during the observation period.
The notes will be callable at par plus any coupon due on any quarterly observation date.
If the notes are not called and each index finishes at or above its 70% downside threshold, the payout at maturity will be par plus any final coupon otherwise due.
Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | Nasdaq-100 index, S&P 500 index, Russell 2000 index
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| Amount: | $18.91 million
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| Maturity: | June 21, 2024
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| Coupon: | 13.6% per year, payable quarterly if each index closes at or above its coupon threshold level on every trading day during the observation period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par plus any coupon otherwise due; otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level
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| Call option: | At par plus any coupon otherwise due on any quarterly observation date
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| Initial levels: | 11,265.99 for Nasdaq, 1,665.694 for Russell, 3,674.84 for S&P
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| Coupon threshold levels: | 7,886.193 for Nasdaq, 1,165.986 for Russell, 2,572.388 for S&P; 70% of initial levels
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| Downside threshold levels: | 7,886.193 for Nasdaq, 1,165.986 for Russell, 2,572.388 for S&P; 70% of initial levels
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| Pricing date: | June 17
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| Settlement date: | June 23
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61774DPQ4
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