Published on 8/11/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.2 million contingent income autocalls on three SPDR funds
By William Gullotti
Buffalo, N.Y., Aug. 11 – Morgan Stanley Finance LLC priced $1.2 million of contingent income autocallable securities due May 11, 2023 linked to the worst performing of the Financial Select Sector SPDR fund, the Energy Select Sector SPDR fund and the Industrial 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 7.56% if each underlying fund closes at or above its 67% coupon barrier on the observation date for that quarter.
The notes will be called at par plus coupon if each fund closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus any coupon due unless any underlying fund finishes below its 67% downside threshold, in which case investors will be fully exposed to any losses of the worst performing fund.
Morgan Stanley is the guarantor.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying funds: | Financial Select Sector SPDR fund, Energy Select Sector SPDR fund, Industrial Select Sector SPDR fund
|
| Amount: | $1,200,000
|
| Maturity: | May 11, 2023
|
| Coupon: | 7.56% annualized, payable quarterly if each fund closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each fund finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing fund
|
| Call: | At par plus coupon if each fund closes at or above its initial level on any quarterly call date
|
| Initial levels: | $37.78 for Financial, $53.63 for Energy, $105.35 for Industrial
|
| Coupon barrier levels: | $25.313 for Financial, $35.932 for Energy, $70.585 for Industrial; 67% of initial levels
|
| Downside threshold levels: | $25.313 for Financial, $35.932 for Energy, $70.585 for Industrial; 67% of initial levels
|
| Pricing date: | May 7
|
| Settlement date: | May 12
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.75%
|
| Cusip: | 61771VK66
|
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