Published on 12/24/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.25 million callable contingent income notes on indexes, ETF
By Devika Patel
Knoxville, Tenn., Dec. 24 – Morgan Stanley Finance LLC priced $1.25 million of callable contingent income securities due Dec. 12, 2024 linked to the Nasdaq-100 index, the iShares MSCI Emerging Markets ETF and the Euro Stoxx 50 index, 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 10% per year if each underlying closes at or above its coupon barrier level, 70% of its initial level, on each trading day for that quarter.
Beginning on June 12, 2020, the notes will be callable at par plus any coupon on any quarterly redemption date.
The payout at maturity will be par plus any coupon unless the least-performing underlying finishes below its downside threshold level, 60% of its initial level, in which case investors will lose 1% for every 1% that the least-performing underlying declines from its initial level.
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, iShares MSCI Emerging Markets ETF and Euro Stoxx 50 index
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| Amount: | $1.25 million
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| Maturity: | Dec. 12, 2024
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| Coupon: | 10% per year, payable quarterly if each underlying closes at or above coupon barrier level on each trading day for that quarter
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| Price: | Par
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| Payout at maturity: | If each underlying finishes at or above downside threshold level, par plus any coupon; if any underlying finishes below downside threshold level, 1% loss for every 1% that least-performing underlying declines from initial level
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| Call option: | Beginning on June 12, 2020, at par plus any coupon on any quarterly redemption date
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| Initial levels: | 8,397.367 for Nasdaq, $43.07 for EM, 3,692.34 for Stoxx
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| Coupon barriers: | 5,878.157 for Nasdaq, $30.149 for EM, 2,584.638 for Stoxx, or 70% of initial levels
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| Downside thresholds: | 5,038.42 for Nasdaq, $25.842 for EM, 2,215.404 for Stoxx, or 60% of initial levels
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| Pricing date: | Dec. 9
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| Settlement date: | Dec. 12
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61769H4S1
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