Published on 9/16/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $250,000 contingent income autocalls on Dow, Nasdaq, Russell
By Sarah Lizee
Olympia, Wash., Sept. 16 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Dec. 20, 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 11.5% 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 monthly call determination date after three months.
The payout at maturity will be par unless any index closes below its 60% downside threshold on any day during the life of the notes, in which case investors will be exposed to the decline of the least performing index, with payout capped at par.
The agent is Morgan Stanley & Co. LLC.
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. 20, 2021
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Coupon: | 11.5% 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 unless any index closes below its downside threshold on any day during the life of the notes, in which case investors will be exposed to the decline of the least performing index, with payout capped at par
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Call: | Automatically at par if each index closes at or above its initial level any monthly call determination date after three months
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Initial index levels: | 1,497.271 for Russell, 11,087.4 for Nasdaq, 27,665.64 for Dow
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Coupon barrier levels: | 1,048.09 for Russell, 7,761.18 for Nasdaq, 19,365.948 for Dow; 70% of initial levels
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Downside thresholds: | 898.363 for Russell, 6,652.44 for Nasdaq, 16,599.384 for Dow; 60% of initial levels
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Pricing date: | Sept. 11
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Settlement date: | Sept. 16
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.5%
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Cusip: | 61771BX66
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