Published on 8/10/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.13 million contingent income autocallables on tech stocks
By William Gullotti
Buffalo, N.Y., Aug. 10 – Morgan Stanley Finance LLC priced $2.13 million of contingent income autocallable securities due May 23, 2024 linked to the worst performing of the shares of Apple Inc., Amazon.com, Inc. and Tesla, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 17.5% if each underlying stock closes at or above its 60% coupon barrier on the observation date for that quarter. Previously unpaid coupons will also be paid.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any quarterly review date after six months.
The payout at maturity will be par plus any coupon due unless either underlying stock finishes below its 50% 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
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Apple, Inc., Amazon.com, Inc., Tesla, Inc.
|
| Amount: | $2,132,000
|
| Maturity: | May 23, 2024
|
| Coupon: | 17.5% annualized, payable quarterly if each stock closes at or above coupon barrier on review date for that quarter; previously unpaid coupons will also be paid
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing stock
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date after six months
|
| Initial levels: | $124.69 for Apple, $3,231.80 for Amazon, $563.46 for Tesla
|
| Coupon barrier levels: | $74.814 for Apple, $1,939.08 for Amazon, $338.076 for Tesla; 60% of initial levels
|
| Downside thresholds: | $62.345 for Apple, $1,615.90 for Amazon, $281.73 for Tesla; 50% of initial levels
|
| Pricing date: | May 19
|
| Settlement date: | May 24
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.25%
|
| Cusip: | 61771VM49
|
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