Published on 3/6/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.14 million contingent income autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, March 6 – Morgan Stanley Finance LLC priced $1.14 million of contingent income autocallable securities due March 5, 2025 linked to the worst performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 9.5% 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 quarterly call determination date after six months.
The payout at maturity will be par plus any coupon unless any index finishes below its 65% threshold level any day during the life of the notes, 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
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying assets: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $1,142,000
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| Maturity: | March 5, 2025
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| Coupon: | 9.5% annualized, payable monthly if each index closes at or above coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par plus any coupon unless any index finishes below its threshold level, in which case investors will be fully exposed to any losses of the worst performing index
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| Call: | At par plus coupon if each index closes at or above its initial level any quarterly call determination date after six months
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| Initial levels: | 1,476.431 for Russell,8,461.835 for Nasdaq, 25,409.36 for Dow
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| Coupon barriers: | 1,033.502 for Russell, 5,923.85 for Nasdaq, 17,786.552 for Dow, 70% of initial levels
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| Threshold levels: | 959.68 for Russell, 5,500.193 for | Nasdaq, 16,516.084 for Dow, 65% of initial levels
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| Pricing date: | Feb. 28
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| Settlement date: | March 4
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| Underwriter: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61770FKV7
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