Published on 6/30/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $14.32 million contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., June 30 – Morgan Stanley Finance LLC priced $14.32 million of contingent income autocallable securities due June 28, 2022 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the S&P 500 index, 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 14.75% per year if each index closes at or above its coupon barrier level, 75% 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 quarterly determination date.
The payout at maturity will be par plus any coupon due unless any index finishes below its 75% 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. Morgan Stanley Wealth Management is the dealer.
| 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 S&P 500 index
|
| Amount: | $14,315,000
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| Maturity: | June 28, 2022
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| Coupon: | 14.75% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter
|
| Price: | Par
|
| 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 its initial level on any quarterly determination date
|
| Initial index levels: | 1,439.338 for Russell, 3,131.29 for S&P, 10,209.82 for Nasdaq
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| Coupon barrier levels: | 1,079.504 for Russell, 2,348.468 for S&P, 7,657.365 for Nasdaq; 75% of initial levels
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| Downside thresholds: | 1,079.504 for Russell, 2,348.468 for S&P, 7,657.365 for Nasdaq; 75% of initial levels
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| Pricing date: | June 23
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| Settlement date: | June 26
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2%
|
| Cusip: | 61771BPU2
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