Published on 9/9/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.04 million contingent income autocalls on three stocks
By Sarah Lizee
Olympia, Wash., Sept. 9 – Morgan Stanley Finance LLC priced $2.04 million of contingent income autocallable securities due March 7, 2022 linked to the worst performing of the common stocks of Mastercard Inc., Pinterest, Inc. and Twitter, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annual rate of 10% if each stock closes at or above its coupon barrier, 55% of its initial level, on the determination date for that period.
After four months, the notes will be called at par if each stock closes above its initial level on any monthly redemption date.
The payout at maturity will be par unless any stock finishes below its 55% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Mastercard Inc., Pinterest, Inc. and Twitter, Inc.
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| Amount: | $2,037,000
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| Maturity: | March 7, 2022
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| Coupon: | 10% per year, payable each month that each stock closes at or above coupon barrier on determination date for that period
|
| Price: | Par
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| 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
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| Call: | After four months, the notes will be called at par if each stock closes above its initial level on any monthly redemption date
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| Initial share prices: | $358.19 for Mastercard, $36.79 for Pinterest, $40.58 for Twitter
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| Coupon barriers: | $268.643 for Mastercard, $27.593 for Pinterest, $30.435 for Twitter; 55% of initial share prices
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| Downside thresholds: | $268.643 for Mastercard, $27.593 for Pinterest, $30.435 for Twitter; 55% of initial share prices
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| Pricing date: | Sept. 1
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| Settlement date: | Sept. 8
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61771B2V5
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