Published on 4/13/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $257,000 autocallable jump securities tied to three indexes
By Sarah Lizee
Olympia, Wash., April 13 – Morgan Stanley Finance LLC priced $257,000 of 0% jump securities with autocallable feature due April 3, 2025 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 17.5% if each index closes at or above 95% of its initial level on any annual call observation date after one year.
If the notes have not been called and each index finishes at or above 95% of its initial level, the payout at maturity will be par plus 87.5%. If the worst performing index declines by more than 5% but by no more than 30%, the payout will be par. If the worst performing index finishes below its 70% downside threshold level, investors will be fully exposed to the decline.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $257,000
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| Maturity: | April 3, 2025
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus 17.5% a year if each index closes at or above 95% of initial level on any annual call observation date after one year
|
| Payout at maturity: | If the notes have not been called and each index finishes at or above 95% of its initial level, par plus 87.5%; if the worst performing index declines by more than 5% but by no more than 30%, par; if the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline
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| Initial levels: | 2,584.59 for S&P, 21,917.16 for Dow, 1,153.103 for Russell
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| Downside thresholds: | 1,809.213 for S&P, 15,342.012 for Dow, 807.172 for Russell; 70% of initial levels
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| Pricing date: | March 31
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| Settlement date: | April 3
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61770FQA7
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