Published on 6/19/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., June 19 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due June 19, 2025 linked to the least performing of the Russell 2000 index, the S&P 500 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 quarter, the notes will pay a contingent coupon at the rate of 7.25% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date after one year.
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, S&P 500 index and Dow Jones industrial average
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| Amount: | $1 million
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| Maturity: | June 19, 2025
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| Coupon: | 7.25% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter
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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 one year
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| Initial levels: | 1,419.607 for Russell, 25,763.16 for Dow, 3,066.59 for S&P
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| Coupon barriers: | 993.725 for Russell, 18,034.212 for Dow, 2,146.613 for S&P; 70% of initial levels
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| Downside threshold levels: | 993.725 for Russell, 18,034.212 for Dow, 2,146.613 for S&P; 70% of initial levels
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| Pricing date: | June 15
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| Settlement date: | June 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4%
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| Cusip: | 61771BMD3
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