Published on 11/24/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $19.7 million contingent income autocalls on three ETFs
By Wendy Van Sickle
Columbus, Ohio, Nov. 24 – Morgan Stanley Finance LLC priced $19.7 million of contingent income autocallable securities due Nov. 22, 2024 linked to the shares of the Financial Select Sector SPDR fund, the Energy Select Sector SPDR fund and the Consumer Staples Select Sector SPDR fund, according to a 424B2 filed with the Securities and Exchange Commission.
The securities are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 13.7% if each ETF closes at or above its 80% coupon barrier on the relevant observation date.
The notes will be called at par plus coupon if each ETF closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final coupon unless any ETF finishes below its 80% downside threshold, in which case investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Issue: | Contingent income autocallable securities
|
| Guarantor: | Morgan Stanley
|
| Underlying ETFs: | Financial Select Sector SPDR fund, Energy Select Sector SPDR fund, Consumer Staples Select Sector SPDR fund
|
| Amount: | $19,702,000
|
| Maturity: | Nov. 22, 2024
|
| Coupon: | 13.7% annualized, payable quarterly if each ETF closes at or above coupon barrier on the corresponding review date
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing ETF from its initial level
|
| Call: | At par plus coupon if each ETF closes at or above its initial level on any quarterly call date
|
| Initial levels: | $39.02 for Financial, $54.67 for Energy, $72.05 for Consumer Staples
|
| Coupon barrier levels: | $31.216 for Financial, $43.736 for Energy, $57.64 for Consumer Staples; 80% of initial levels
|
| Downside thresholds: | $31.216 for Financial, $43.736 for Energy, $57.64 for Consumer Staples; 80% of initial levels
|
| Pricing date: | Nov. 19
|
| Settlement date: | Nov. 24
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61773G697
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
