Published on 4/23/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million autocallable jump securities tied to three indexes
By Sarah Lizee
Olympia, Wash., April 23 – Morgan Stanley Finance LLC priced $1 million of 0% jump securities with autocallable feature due April 23, 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 13.5% if each index closes at or above 90% of its initial level on any annual observation date.
The payout at maturity will be par plus 67.5% if each index finishes at or above 90% of its initial level. If the worst performing index declines 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
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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, Russell 2000 index and Dow Jones industrial average
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| Amount: | $1 million
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| Maturity: | April 23, 2025
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus 13.5% a year if each index closes above 90% of initial level on any annual review date
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| Payout at maturity: | Par plus 67.5% if each index finishes at or above 90% of its initial level; if the worst performing index declines by no more than 30%, par; if the worst performing index finishes below its 70% downside threshold level, investors will be fully exposed to the decline
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| Initial levels: | 2,874.56 for S&P, 24,242.49 for Dow, 1,229.098 for Russell
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| Call thresholds: | 2,587.104 for S&P, 21,818.241 for Dow, 1,106.188 for Russell; 90% of initial levels
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| Downside thresholds: | 2,012.192 for S&P, 16,969.743 for Dow, 860.369 for Russell; 70% of initial levels
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| Pricing date: | April 17
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| Settlement date: | April 22
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.625%
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| Cusip: | 61770FF35
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