Published on 6/8/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., June 8 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Dec. 2, 2021 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, 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 the rate of 10.75% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that month.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date after six months.
The payout at maturity will be par plus any coupon due unless any index finishes below its 70% downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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 indexes: | Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
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| Amount: | $250,000
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| Maturity: | Dec. 2, 2021
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| Coupon: | 10.75% per year, payable monthly if each index closes at or above barrier level on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par plus any coupon due unless any index finishes below its downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level
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| Call: | Automatically at par if each index closes at or above its initial level on any quarterly determination date after six months
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| Initial index levels: | 1,394.035 for Russell, 25,383.11 for Dow, 9,555.524 for Nasdaq
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| Coupon barrier levels: | 975.825 for Russell, 17,768.177 for Dow, 6,688.867 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 975.825 for Russell, 17,768.177 for Dow, 6,688.867 for Nasdaq; 70% of initial levels
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| Pricing date: | May 29
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| Settlement date: | June 3
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61771BAR5
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