Published on 10/8/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $8.03 million contingent income autocalls on four stocks
By Wendy Van Sickle
Columbus, Ohio, Oct. 8 – Morgan Stanley Finance LLC priced $8.03 million of contingent income autocallable yield notes due Oct. 1, 2026 tied to the stocks of Apple Inc., Netflix, Inc., Facebook Inc. and Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 9.35% per year if each stock closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial level on any quarterly call determination date after six months.
If the notes are not called and each stock finishes at or above its 60% downside threshold, the payout at maturity will be par plus the final coupon.
Otherwise, investors will be fully exposed to the 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: | Contingent income autocallable yield notes
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| Underlying stocks: | Apple Inc., Netflix, Inc., Facebook Inc. and Amazon.com, Inc.
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| Amount: | $8.03 million
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| Maturity: | Oct. 1, 2026
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| Coupon: | 9.35% per year, payable quarterly if each stock closes at or above coupon barrier level on any observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par plus final coupon; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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| Call option: | At par plus coupon if each stock closes at or above its initial level on any quarterly call determination date after six months
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| Initial levels: | $353.58 for Facebook, $145.37 for Apple, $592.64 for Netflix, $3,405.80 for Amazon
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| Coupon barriers: | $247.506 for Facebook, $101.759 for Apple, $414.848 for Netflix, $2,384.06 for Amazon; 70% of initial levels
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| Downside threshold levels: | $212.148 for Facebook, $87.22 for Apple, $355.584 for Netflix, $2,043.48 for Amazon; 60% of initial levels
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| Pricing date: | Sept. 27
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| Settlement date: | Sept. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4.15%
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| Cusip: | 61773FP98
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