Published on 12/11/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.26 million contingent income autocalls on stocks
By Sarah Lizee
Olympia, Wash., Dec. 11 – Morgan Stanley Finance LLC priced $1.26 million of contingent income autocallable securities due Nov. 30, 2022 linked to the worst performing of the common stocks of Amazon.com, Inc., Citigroup Inc., Halliburton Co. and American Airlines Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 65% of its initial share price, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annualized rate of 22.5%.
Beginning Feb. 28, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above 90% of its initial level on any quarterly determination date.
If each stock’s final share price is greater than or equal to its 65% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Amazon.com, Inc., Citigroup Inc., Halliburton Co. and American Airlines Group Inc.
|
| Amount: | $1,258,000
|
| Maturity: | Nov. 30, 2022
|
| Coupon: | 22.5% per year, payable quarterly if each stock closes at or above coupon threshold level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
|
| Call: | Beginning Feb. 28, 2020, at par plus contingent coupon if each stock closes at or above 90% of its initial level on any quarterly determination date
|
| Initial share prices: | $1,773.84 for Amazon, $75.68 for Citi, $21.34 for Halliburton, $28.99 for American
|
| Coupon barrier levels: | $1,152.996 for Amazon, $49.192 for Citi, $13.871 for Halliburton, $18.844 for American; 65% of initial levels
|
| Downside thresholds: | $1,152.996 for Amazon, $49.192 for Citi, $13.871 for Halliburton, $18.844 for American; 65% of initial levels
|
| Pricing date: | Nov. 25
|
| Settlement date: | Nov. 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 4%
|
| Cusip: | 61769HV44
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
