Published on 3/9/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.41 million callable contingent income securities linked to indexes
By Wendy Van Sickle
Columbus, Ohio, March 9 – Morgan Stanley Finance LLC priced $1.41 million of callable contingent income securities due March 7, 2025 linked to the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 8% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that month.
If the lowest-performing index finishes at or above its knock-in level, 60% of its initial level, the payout at maturity will be par plus the final coupon, if any. If the lowest-performing index finishes below its knock-in level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
Beginning March 8, 2021, the notes will be callable at par on any quarterly redemption date.
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: | Callable contingent income securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $1,413,000
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| Maturity: | March 7, 2025
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| Coupon: | 8% per year, payable monthly if each index closes at or above coupon barrier level on observation date that month
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above knock-in level, par; if any index finishes below knock-in level, full exposure to decline of lowest-performing index from its initial level
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| Call option: | Beginning March 8, 2021 at par on any quarterly redemption date
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| Initial levels: | 25,409.36 for Dow, 1,476.431 for Russell, 8,461.835 for Nasdaq
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| Coupon barriers: | 17,786.552 for Dow, 1,033.502 for Russell, 5,923.285 for Nasdaq; 70% of initial levels
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| Knock-in levels: | 15,245.616 for Dow, 885.859 for Russell, 5,077.101 for Nasdaq; 60% of initial levels
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| Pricing date: | Feb. 28
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| Settlement date: | March 4
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.625%
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| Cusip: | 61770FGE0
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