Published on 2/12/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 contingent income autocalls on indexes, ETF
By Sarah Lizee
Olympia, Wash., Feb. 12 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Aug. 5, 2021 linked to the worst performing of the S&P 500 index, the Russell 200 index and the iShares China Large-Cap exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If each underlier closes at or above its coupon threshold level, 70% of its initial level, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 9.25%.
After six months, the notes will be called at par plus the contingent coupon if each underlier closes at or above the initial share price on any monthly determination date.
The payout at maturity will be par plus the final coupon unless any underlier ever closes below its 70% downside threshold on any day during the life of the notes, in which case investors will be fully exposed to the performance of the least performing underlier.
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: | Contingent income autocallable securities
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| Underliers: | S&P 500 index, Russell 200 index and iShares China Large-Cap ETF
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| Amount: | $250,000
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| Maturity: | Aug. 5, 2021
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| Coupon: | 9.25% per year, payable monthly if each underlier closes at or above coupon threshold level on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par plus coupon unless any underlier ever closes below its downside threshold on any day during life of the notes, in which case exposure to performance of least performing underlier
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| Call: | After six months, at par plus contingent coupon if each underlier closes at or above initial level on any monthly determination date
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| Initial levels: | 3,225.52 for S&P, 1,614.061 for Russell, $39.74 for ETF
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| Coupon thresholds: | 2,257.864 for S&P, 1,129.843 for Russell, $27.818 for ETF, or 70% of initial levels
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| Downside thresholds: | 2,257.864 for S&P, 1,129.843 for Russell, $27.818 for ETF, or 70% of initial levels
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| Pricing date: | Jan. 31
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| Settlement date: | Feb. 5
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61770FAU0
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