Published on 1/5/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.57 million callable contingent income securities on index, ETF
By Kiku Steinfeld
Chicago, Jan. 5 – Morgan Stanley Finance LLC sold $1.57 million of callable contingent income securities due Dec. 27, 2024 tied to the worst performing of the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Semiannually, the notes will pay a contingent coupon at the rate of 9.5% per year if each underlier closes at or above its coupon threshold level, 70% of its initial level, on the related determination date.
The notes will be callable at par on any semiannual observation date.
The payout at maturity will be par plus the coupon unless any underlier finishes below its 70% downside threshold, in which case investors will be fully exposed to the worst performer’s decline from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying assets: | S&P 500 index, SPDR S&P Biotech ETF
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Amount: | $1,569,000
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Maturity: | Dec. 27, 2024
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Coupon: | 9.5% per year, payable semiannually if each underlier closes at or above its coupon threshold level on the related determination date
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Price: | Par
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Payout at maturity: | Par plus coupon unless any underlier finishes below its downside threshold, in which case investors will be fully exposed to worst performer’s decline from its initial level
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Call option: | At par on any semiannual observation date
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Initial levels: | $116.52 for ETF, 4,696.56 for index
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Coupon threshold levels: | $81.564 for ETF, 3,287.592 for index; 70% of initial levels
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Downside threshold levels: | $81.564 for ETF, 3,287.592 for index; 70% of initial levels
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Pricing date: | Dec. 22
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Settlement date: | Dec. 28
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0%
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Cusip: | 61773HQN2
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