Published on 4/14/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.14 million jump autocallables on three indexes
By Kiku Steinfeld
Chicago, April 14 – Morgan Stanley Finance LLC priced $3.14 million of 0% jump securities with autocallable feature due April 7, 2026 linked to the worst performing of the S&P 500 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 16.5% if each index closes at or above its call level on any of five annual call dates. The call level is 95% of the initial level on the first three call dates and 100% of the initial level on the fourth and fifth call dates.
If the notes are not called and each index finishes at or above its initial level, the payout at maturity will be $1,990 for each $1,000 principal amount of notes. If any index falls but each index finishes at or above its 75% downside threshold level, investors will receive par. Otherwise, investors will be fully exposed to the decline of that index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | S&P 500 index, Dow Jones industrial average and Russell 2000 index
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| Amount: | $3,137,000
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| Maturity: | April 7, 2026
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| Coupon: | 0%
|
| Price: | Par
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| Call: | At par plus 16.5% a year if each index closes at or above call level on any of five annual call review dates; call level is 95% of the initial level on first three call dates and 100% of initial level on fourth and fifth call dates
|
| Payout at maturity: | If notes are not called and each index finishes at or above its initial level, $1,990 for each $1,000 principal amount of notes; if any index falls but each index finishes at or above its downside threshold, par; otherwise, full exposure to decline of worst performing index
|
| Initial levels: | 2,626.65 for S&P, 1,158.317 for Russell, 22,327.48 for Dow
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| Call threshold levels: | 1,575.398 for Russell, 27,286.708 for Dow, or 95% of initial levels for first three call dates; 2,626.65 for S&P, 1,158.317 for Russell, 22,327.48 for Dow, or 100% of initial levels for fourth and fifth dates
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| Downside thresholds: | 1,969.988 for S&P, 868.738 for Russell, 16,745.61 for Dow; 75% of initial levels
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| Pricing date: | March 30
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| Settlement date: | April 6
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61770FRW8
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