Published on 3/9/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., March 9 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Dec. 3, 2020 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 15% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly redemption date.
The payout at maturity will be par unless any index finishes below its initial level and any index ever closes below its 70% downside threshold any day during the life of the notes, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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 indexes: | Russell 2000, Nasdaq-100 and S&P 500
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| Amount: | $250,000
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| Maturity: | Dec. 3, 2020
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| Coupon: | 15% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below initial level and any index ever closes below its downside threshold during life of notes, in which case 1% loss for every 1% that least-performing index declines from its initial level
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| Call: | Automatically at par if each index closes at or above initial level on any quarterly redemption date
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| Initial index levels: | 1,476.431 for Russell, 2,954.22 for S&P, 8,461.835 for Nasdaq
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| Coupon barrier levels: | 1,033.502 for Russell, 2,067.954 for S&P, 5,923.285 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 1,033.502 for Russell, 2,067.954 for S&P, 5,923.285 for Nasdaq; 70% 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: | 0.25%
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| Cusip: | 61770FJU1
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