Published on 5/26/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.38 million contingent income autocalls on stocks
By Sarah Lizee
Olympia, Wash., May 26 – Morgan Stanley Finance LLC priced $1.38 million of contingent income autocallable securities due May 30, 2023 linked to the worst performing of the common stocks of JPMorgan Chase & Co., Goldman Sachs Group, Inc. and Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 17% if each stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date starting Dec. 1.
The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case investors will be fully exposed to the losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | JPMorgan Chase & Co., Goldman Sachs Group, Inc. and Bank of America Corp.
|
| Amount: | $1,375,000
|
| Maturity: | May 30, 2023
|
| Coupon: | 17% per year, payable each quarter that each stock closes at or above coupon barrier on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
|
| Call: | Automatically at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly redemption date starting Dec. 1
|
| Initial share prices: | $90.17 for JPMorgan, $180.10 for Goldman, $22.90 for BofA
|
| Coupon barriers: | $54.102 for JPMorgan, $108.06 for Goldman, $13.74 for BofA; 60% of initial share prices
|
| Downside thresholds: | $54.102 for JPMorgan, $108.06 for Goldman, $13.74 for BofA; 60% of initial share prices
|
| Pricing date: | May 21
|
| Settlement date: | May 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61771BFU3
|
|
|
© 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.
