Published on 10/28/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.88 million trigger step securities on index basket
By Wendy Van Sickle
Columbus, Ohio, Oct. 28 – Morgan Stanley Finance LLC priced $1.88 million 0% trigger step securities due Oct. 21, 2025 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The basket consists of the Euro Stoxx 50 index with an initial weight of 40%, the FTSE 100 index and the Nikkei 225 index each with an initial weight of 20%, the Swiss Market index and the S&P/ASX 200 index each with an initial weight of 7.5% and the Hang Seng index with an initial weight of 5%.
If the basket return is zero or positive, the payout at maturity will be par of $10 plus the greater of the basket return and the step return of 27.5%.
Investors will receive par if the basket declines by 25% or less and will lose 1% for each 1% decline from its initial level if the basket falls more than 25%.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger step securities
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| Underlying indexes: | Euro Stoxx 50 (40% weight), FTSE 100 and Nikkei Stock (20% weight each), Swiss Market and S&P/ASX 200 (7.5% weight each) and Hang Seng (5% weight)
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| Amount: | $1,880,650
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| Maturity: | Oct. 21, 2025
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If the basket return is zero or positive, par plus the greater of the basket return and the step return of 27.5%; par if the basket declines by 25% or less; 1% loss for each 1% decline from its initial level if the basket falls more than 25%
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| Initial index level: | 3,242.51 for Stoxx, 5,884.65 for FTSE, 23,671.13 for Nikkei, 10,184.36 for Swiss, 6,229.383 for S&P/ASX, 24,542.26 for Hang Seng
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| Pricing date: | Oct. 19
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| Settlement date: | Oct. 21
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| Agent: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61771D647
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