Published on 5/20/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.54 million contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., May 20 – Morgan Stanley Finance LLC priced $1.54 million of contingent income autocallable securities due May 20, 2024 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 quarter, the notes will pay a contingent coupon at the rate of 10.5% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par if each index closes at or above its initial level on any determination date after six months.
The payout at maturity will be par plus any coupon due unless any index finishes below its 60% 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
|
| 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: | $1,543,000
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| Maturity: | May 20, 2024
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| Coupon: | 10.5% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter
|
| 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
|
| Call: | Automatically at par if each index closes at or above initial level on any determination date after six months
|
| Initial index levels: | 9,152.639 for Nasdaq, 1,256.992 for Russell, 23,685.42 for Dow
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| Coupon barrier levels: | 6,406.847 for Nasdaq, 879.894 for Russell, 16,579.794 for Dow; 70% of initial levels
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| Downside thresholds: | 5,491.583 for Nasdaq, 754.195 for Russell, 14,211.252 for Dow; 60% of initial levels
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| Pricing date: | May 15
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| Settlement date: | May 20
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61771BEY6
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