Published on 2/16/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $6.94 million contingent income autocalls on indexes
By Kiku Steinfeld
Chicago, Feb. 17 – Morgan Stanley Finance LLC priced $6.94 million of contingent income autocallable securities due Aug. 4, 2021 linked to the worst performing of the Russell 2000 index, the Euro Stoxx 50 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 6.35% if each underlying index closes at or above its 70% coupon barrier on the observation date for that month.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any determination date after three months.
The payout at maturity will be par plus the final coupon unless any index ever finishes below its 70% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
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 assets: | Russell 2000 index, Euro Stoxx 50 index and Dow Jones industrial average
|
| Amount: | $6,939,000
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| Maturity: | Aug. 4, 2021
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| Coupon: | 6.35% annualized, payable monthly if each index closes at or above coupon barrier on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Unless any index ever finishes below its threshold level, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call: | At par plus coupon if each index closes at or above its initial level on any determination date after three months
|
| Initial levels: | 1,648.219 for Russell, 3,690.78 for Stoxx and 28,859.44, for Dow
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| Coupon barriers/downside thresholds: | 1,153.753 for Russell, 2,583.546 for Stoxx and 20,201.608 for Dow, 70% of initial levels
|
| Pricing date: | Jan. 30
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| Settlement date: | Feb. 4
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| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 1.875%
|
| Cusip: | 61770FEZ5
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