Published on 9/3/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.16 million contingent income autocallables linked to bank stocks
By Wendy Van Sickle
Columbus, Ohio, Sept. 3 – Morgan Stanley Finance LLC priced $1.16 million of contingent income autocallable securities due Sept. 1, 2022 linked to the least performing of the common stocks of Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 10% per year if each stock closes at or above its downside threshold level, 60% of its initial level, on the determination date for that month.
Beginning Feb. 27, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly early redemption determination date.
The payout at maturity will be par unless any stock finishes below its downside threshold level, in which case investors will be exposed to the decline of the least-performing stock from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co.
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| Amount: | $1,155,000
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| Maturity: | Sept. 1, 2022
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| Coupon: | 10% per year, payable monthly if each stock closes at or above downside threshold on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below downside threshold, in which case exposure to decline of least-performing stock from initial level
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| Call: | Beginning Feb. 27, 2020, automatically at par if each stock closes at or above initial level on any quarterly determination date
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| Initial share prices: | $61.66 for Citigroup, $26.47 for BofA, $105.74 for JPMorgan and $44.75 for Wells Fargo
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| Downside thresholds: | $36.996 for Citigroup, $15.882 for BofA, $63.444 for JPMorgan and $28.85 for Wells Fargo, or 60% of initial share prices
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| Pricing date: | Aug. 27
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| Settlement date: | Aug. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.125%
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| Cusip: | 61769HQF5
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