Published on 4/24/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4 million callable contingent income notes linked to indexes
By Sarah Lizee
Olympia, Wash., April 24 – Morgan Stanley Finance LLC priced $4 million of callable contingent income securities due April 22, 2026 linked to the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 9% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period.
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 downside threshold level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
The notes will be callable at par on any quarterly redemption date starting April 22, 2021.
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: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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| Amount: | $4 million
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| Maturity: | April 22, 2026
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| Coupon: | 9% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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| Call option: | At par on any quarterly redemption date starting April 22, 2021
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| Initial levels: | 2,874.56 for S&P, 1,229.098 for Russell, 24,242.49 for Dow
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| Coupon barriers: | 1,724.736 for S&P, 737.459 for Russell, 14,545.494 for Dow; 60% of initial levels
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| Downside threshold levels: | 1,724.736 for S&P, 737.459 for Russell, 14,545.494 for Dow; 60% 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: | 0.25%
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| Cusip: | 61770FG26
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