Published on 8/26/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $4.07 million contingent income autocalls on three SPDR funds
By William Gullotti
Buffalo, N.Y., Aug. 26 – Morgan Stanley Finance LLC priced $4.07 million of contingent income autocallable securities due Aug. 23, 2024 linked to the shares of the Financial Select Sector SPDR Fund, the Energy Select Sector SPDR Fund and the Communication Services Select Sector SPDR Fund, according to a 424B2 filed with the Securities and Exchange Commission.
The securities are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if each ETF closes at or above its 65% coupon barrier on the observation date for that quarter.
The notes will be called at par plus coupon if each ETF closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final coupon unless any ETF finishes below its 65% downside threshold, in which case investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Issue: | Contingent income autocallable securities
|
| Guarantor: | Morgan Stanley
|
| Underlying funds: | Financial Select Sector SPDR Fund, Energy Select Sector SPDR Fund, Communication Services Select Sector SPDR Fund
|
| Amount: | $4,067,000
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| Maturity: | Aug. 23, 2024
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| Coupon: | 8% annualized, payable quarterly if each ETF closes at or above coupon barrier on review date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each ETF finishes at or above downside threshold, par plus the final coupon; otherwise, 1% loss for each 1% decline of worst performing ETF from its initial level
|
| Call: | At par plus coupon if each ETF closes at or above its initial level on any quarterly call date
|
| Initial levels: | $37.69 for Financial, $45.89 for Energy, $82.73 for Communication
|
| Coupon barrier levels: | $24.499 for Financial, $29.829 for Energy, $53.775 for Communication; 65% of initial levels
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| Downside thresholds: | $24.499 for Financial, $29.829 for Energy, $53.775 for Communication; 65% of initial levels
|
| Pricing date: | Aug. 20
|
| Settlement date: | Aug. 25
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61772Y871
|
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