Published on 11/23/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.61 million jump autocallables on ETFs
By Kiku Steinfeld
Chicago, Nov. 23 – Morgan Stanley Finance LLC priced $1.61 million of 0% jump securities with autocallable feature due Nov. 8, 2024 linked to the worst performing of the SPDR S&P Regional Banking ETF and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 9.25% if each fund closes at or above its call threshold on any annual review date. The call threshold is 100% of the initial level on the first date, 95% of the initial level on the second date and 90% of the initial level on the final date.
The payout at maturity will be par plus 27.75% if each fund finishes at or above its 90% call threshold. If the worst performing fund declines by more than 10% but no more than 30%, the payout will be par. If the worst performing fund finishes below its 70% downside threshold level, investors will be fully exposed to the decline of that fund.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying funds: | SPDR S&P Regional Banking ETF, Financial Select Sector SPDR fund
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| Amount: | $1,605,000
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| Maturity: | Nov. 8, 2024
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus 9.25% a year if each fund closes at or above call level on any annual review date
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| Payout at maturity: | If each fund finishes at or above 90% call threshold, par plus 27.75%; if worst performing fund falls by more than 10% but no more than 30%, par; otherwise, full exposure to decline of worst performing fund
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| Initial levels: | $40.02 for financial and $74.59 for banking
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| Call thresholds: | $40.02 for financial and $74.59 for banking, or 100% of initial levels, on Nov. 14, 2022; $38.019 for financial and $70.861 for banking, or 95% of initial levels, on Nov. 6, 2023; $36.018 for financial and $67.131 for banking, or 90% of initial levels, on Nov. 5, 2024
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| Downside thresholds: | $28.014 for financial, $52.213 for banking; 70% of initial levels
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| Pricing date: | Nov. 5
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| Settlement date: | Nov. 10
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.25%
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| Cusip: | 61773HEQ8
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