Published on 9/18/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.1 million trigger gears tied to basket of indexes
By Sarah Lizee
Olympia, Wash., Sept. 18 – Morgan Stanley Finance LLC priced $1.1 million of 0% trigger gears due Sept. 18, 2030 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.
If the basket return is positive, the payout at maturity will be par plus 1.98 times the basket return. If the basket return declines but not more than 30%, the payout will be par. If the basket declines beyond the downside threshold, investors will lose 1% for every 1% that the basket declines from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is acting as dealer.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Trigger gears
|
| Underlying indexes: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei 225 index (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight) and Hang Seng (5% weight)
|
| Amount: | $1,097,500
|
| Maturity: | Sept. 18, 2030
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the basket return is positive, par plus 1.98 times the basket return; if the basket return declines but not more than 30%, the payout will be par; if the basket declines beyond the downside threshold, investors will lose 1% for every 1% that the basket declines from its initial level
|
| Initial levels: | 3,338.84 for Stoxx, 6,078.48 for FTSE, 23,475.53 for Nikkei, 10,552.04 for Swiss Market, 5,956.132 for S&P/ASX and 24,725.63 for Hang Seng
|
| Downside threshold: | 70% of initial basket level
|
| Pricing date: | Sept. 16
|
| Settlement date: | Sept. 18
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | UBS Financial Services Inc.
|
| Fees: | 5%
|
| Cusip: | 61771D282
|
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