Published on 2/11/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.6 million contingent income autocalls on three stocks
By Sarah Lizee
Olympia, Wash., Feb. 11 – Morgan Stanley Finance LLC priced $1.6 million of contingent income autocallable securities due Feb. 2, 2023 linked to the worst performing of the common stocks of American International Group, Inc., UnitedHealth Group Inc., Lincoln National Corp. and Progressive Corp., 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 an annual rate of 9.75% if each stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
After six months, the notes will be called at par plus the contingent coupon if each stock closes above its initial level on any monthly redemption date.
The payout at maturity will be par unless any stock finishes below its 60% 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
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | American International Group, Inc., UnitedHealth Group Inc., Lincoln National Corp. and Progressive Corp.
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| Amount: | $1.6 million
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| Maturity: | Feb. 2, 2023
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| Coupon: | 9.75% per year, payable each month that each stock closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
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| Call: | After six months, the notes will be called at par plus the contingent coupon if each stock closes above its initial level on any monthly redemption date
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| Initial share prices: | $50.41 for American International, $285.87 for UnitedHealth, $55.61 for Lincoln and $76.45 for Progressive
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| Coupon barriers: | $30.246 for American International, $171.522 for UnitedHealth, $33.366 for Lincoln and $45.87 for Progressive; 60% of initial share prices
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| Downside thresholds: | $30.246 for American International, $171.522 for UnitedHealth, $33.366 for Lincoln and $45.87 for Progressive; 60% of initial share prices
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| Pricing date: | Jan. 28
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| Settlement date: | Jan. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61770FEM4
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