Published on 10/14/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5 million contingent income autocalls on three SPDR funds
By William Gullotti
Buffalo, N.Y., Oct. 14 – Morgan Stanley Finance LLC priced $5 million of contingent income autocallable securities due Oct. 11, 2024 linked to the shares of the Financial Select Sector SPDR Fund, the Technology Select Sector SPDR Fund and the Energy 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 9.85% 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 any coupon due 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
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| Guarantor: | Morgan Stanley
|
| Underlying ETFs: | Financial Select Sector SPDR Fund, Technology Select Sector SPDR Fund, Energy Select Sector SPDR Fund
|
| Amount: | $5,000,000
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| Maturity: | Oct. 11, 2024
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| Coupon: | 9.85% 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 any coupon due; 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: | $39.02 for Financial, $151.96 for Technology, $56.57 for Energy
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| Coupon barrier levels: | $25.363 for Financial, $98.774 for Technology, $36.771 for Energy; 65% of initial levels
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| Downside thresholds: | $25.363 for Financial, $98.774 for Technology, $36.771 for Energy; 65% of initial levels
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| Pricing date: | Oct. 8
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| Settlement date: | Oct. 14
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61773G176
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