Published on 9/10/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million callable contingent income notes on Dow, Russell, S&P
By Kiku Steinfeld
Chicago, Sept. 10 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due Aug. 5, 2021 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.
Each month, the notes will pay a contingent coupon at the rate of 17% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date that period.
If the lowest-performing index finishes at or above its knock-in level, 75% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, 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 monthly redemption date.
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: | $1,000,000
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Maturity: | June 4, 2021
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Coupon: | 17% per year, payable monthly 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 knock-in level, par; otherwise, full exposure to decline of lowest-performing index from its initial level
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Call option: | At par on any monthly redemption date
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Initial levels: | 3,526.65 for S&P, 1,578.581 for Russell, 28,645.66 for Dow
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Coupon barriers: | 2,644.988 for S&P, 1,183.936 for Russell, 21,484.245 for Dow; 75% of initial levels; 75% of initial levels
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Knock-in levels: | 2,644.988 for S&P, 1,183.936 for Russell, 21,484.245 for Dow; 75% of initial levels
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Pricing date: | Sept. 2
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Settlement date: | Sept. 8
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.25%
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Cusip: | 61771B2X1
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