Published on 12/17/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $6.5 million callable contingent income notes on three indexes
By Taylor Fox
New York, Dec. 17 – Morgan Stanley Finance LLC priced $6.5 million of callable contingent income securities due Dec. 20, 2022 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 9.25% per year if each asset closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If each asset finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par.
If any asset finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing asset from its initial level.
The notes will be callable quarterly at par.
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 assets: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $6.5 million
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| Maturity: | Dec. 20, 2022
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| Coupon: | 9.25% per year, payable quarterly if each asset closes at or above coupon barrier level on observation date that period
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| Price: | Par
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| Payout at maturity: | Par if each asset finishes at or above downside threshold; if any asset finishes below downside threshold, full exposure to decline of least-performing asset from its initial level
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| Call option: | At par quarterly
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| Initial levels: | 12,595.92 for Nasdaq, 1,959.763 for Russell and 30,199.31 for Dow
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| Coupon barriers: | 8,817.144 for Nasdaq, 1,371.834 for Russell and 21,139.517 for Dow; 70% of initial levels
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| Downside thresholds: | 7,557.552 for Nasdaq, 1,175.858 for Russell and 18,119.586 for Dow; 60% of initial levels
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| Pricing date: | Dec. 15
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| Settlement date: | Dec. 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61771ETM0
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