Published on 6/12/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.48 million callable contingent income notes linked to indexes
By Wendy Van Sickle
Columbus, Ohio, June 12 – Morgan Stanley Finance LLC priced $1.48 million of callable contingent income securities due June 10, 2024 tied to the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 12.5% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date that period.
After six months, the notes will be callable at par quarterly.
If the lowest-performing index finishes at or above its downside threshold level, 75% of its initial level, the payout at maturity will be par plus the final coupon. 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.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| 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 Nasdaq-100 index
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| Amount: | $1,478,000
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| Maturity: | June 10, 2024
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| Coupon: | 12.5% 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
|
| Call option: | At par on any quarterly redemption date after six months
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| Initial levels: | 9,704.688 for Nasdaq, 1,452.09 for Russell, 26,269.89 for Dow
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| Coupon barriers: | 7,278.516 for Nasdaq 1,089.068 for Russell, 19,702.418 for Dow; 75% of initial levels
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| Downside threshold levels: | 7,278.516 for Nasdaq 1,089.068 for Russell, 19,702.418 for Dow; 75% of initial levels
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| Pricing date: | June 3
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| Settlement date: | June 10
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61771BHA5
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