Published on 7/23/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.17 million contingent income autocalls on three ETFs
By Kiku Steinfeld
Chicago, July 23 – Morgan Stanley Finance LLC priced $3.17 million of contingent income autocallable securities due July 21, 2022 linked to the Financial Select Sector SPDR fund, the VanEck Vectors Semiconductor exchange-traded fund and the Health Care Select Sector SPDR fund, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.91% 11.91% if each underlying asset closes at or above its 65% coupon barrier on the observation date for that quarter.
The notes will be called at par if each asset closes at or above its initial level on any review date.
The payout at maturity will be par unless either underlying asset finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses of the worst performing fund.
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: | Autocallable contingent income securities
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| Underlying assets: | Financial Select Sector SPDR fund, VanEck Vectors Semiconductor ETF and Health Care Select Sector SPDR fund
|
| Amount: | $3,166,000
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| Maturity: | July 21, 2022
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| Coupon: | 11.91% annualized, payable quarterly if each asset closes at or above 65% coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each asset finishes at or above 65% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing fund
|
| Call: | At par if each asset closes at or above its initial level on any quarterly call date
|
| Initial levels: | $23.95 for Financial, $105.89 for Health Care, $160.21 for Semiconductor
|
| Downside thresholds: | $15.568 for Financial, $68.829 for Health Care, $104.137 for Semiconductor, 65% of initial levels
|
| Pricing date: | July 17
|
| Settlement date: | July 23
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.75%
|
| Cusip: | 61771BVK7
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