Published on 8/18/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.5 million contingent income autocallable securities on stocks
By William Gullotti
Buffalo, N.Y., Aug. 18 – Morgan Stanley Finance LLC priced $2.5 million of contingent income autocallable securities due May 15, 2025 linked to the worst performing stocks of Apple Inc., Verizon Communications Inc., Facebook, Inc. and Exxon Mobil Corp., according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 13.5% if each underlying stock closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any quarterly review date after six months.
The payout at maturity will be par plus any coupon due unless either underlying stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Apple Inc., Verizon Communications Inc., Facebook, Inc., Exxon Mobil Corp.
|
| Amount: | $2,500,000
|
| Maturity: | May 15, 2025
|
| Coupon: | 13.5% annualized, payable quarterly if each stock closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing stock
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date after six months
|
| Initial levels: | $122.77 for Apple, $58.41 for Verizon, $302.55 for Facebook, $60.04 for Exxon Mobil
|
| Coupon barrier levels: | $85.939 for Apple, $40.887 for Verizon, $211.785 for Facebook, $42.028 for Exxon Mobil; 70% of initial levels
|
| Downside thresholds: | $73.662 for Apple, $35.046 for Verizon, $181.53 for Facebook, $36.024 for Exxon Mobil; 60% of initial levels
|
| Pricing date: | May 12
|
| Settlement date: | May 17
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.75%
|
| Cusip: | 61771VN97
|
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