Published on 1/13/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million inverse contingent income buffered notes on tech stocks
By Kiku Steinfeld
Chicago, Jan. 13 – Morgan Stanley Finance LLC priced $1 million of 0% inverse contingent income buffered securities due June 21, 2021 linked to the least performing of the common stocks of Apple Inc., Facebook, Inc., Alphabet Inc. and Netflix, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, if each underlying stock is at or below its threshold level, 120% of its initial price, on any related observation date, the notes will pay a semiannual contingent coupon at an annual rate of 18.3%.
If the final share price of each stock is less than 120% of its initial level, investors will receive par plus the final contingent coupon at maturity.
If all three stocks close above their 120% threshold level, investors will lose 1% for every 1% that the final stock price of the highest performing stock is greater than the initial stock price of the least performing stock plus a 20% buffer, subject to a minimum payout of $0.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Inverse contingent income buffered securities
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| Underlying stocks: | Apple Inc., Facebook, Inc., Alphabet Inc. and Netflix, Inc.
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| Amount: | $1,000,000
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| Maturity: | June 21, 2021
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| Coupon: | 18.3%, payable semiannually if each stock closes at or below 120% of its initial level on any related observation date
|
| Price: | Par
|
| Payout at maturity: | If all stocks close below 120% of their initial levels, the payout will be par plus the contingent coupon due; if all three stocks close above their 120% threshold level, investors will lose 1% for every 1% that the final stock price of the highest performing stock is greater than the initial stock price of the least performing stock plus a 20% buffer, subject to a minimum payout of $0
|
| Initial prices: | $279.86 for Apple Inc., $197.92 for Facebook, Inc., $1,361.17 for Alphabet Inc. and $304.21 for Netflix, Inc.
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| Threshold levels: | $335.832 for Apple Inc., $237.504 for Facebook, Inc., $1,633.404 for Alphabet Inc. and $365.052 for Netflix, Inc., 120% of initial prices
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| Contingent buffer level: | 20% of initial prices
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| Pricing date: | Dec. 16
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| Settlement date: | Dec. 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61769H5K7
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