Published on 9/17/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.37 million autocallable jump securities on Nasdaq, Russell, S&P
By Sarah Lizee
Olympia, Wash., Sept. 17 – Morgan Stanley Finance LLC priced $1.37 million of 0% jump securities with autocallable feature due Sept. 16, 2025 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the S&P 500 index, 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 7.4% if each index closes at or above its call on any annual observation date. The call level for each index will be 95% of the initial level for the first call date and step down by 5% every call date after that.
The payout at maturity will be par plus 37% if each index finishes at or above 75% of its initial level. If the worst performing index declines by more than 25% but not by 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 agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Jump securities with autocallable feature
|
| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and S&P 500 index
|
| Amount: | $1,366,000
|
| Maturity: | Sept. 16, 2025
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| Coupon: | 0%
|
| Price: | Par
|
| Call: | Notes will be called at par plus an annual premium of 7.4% if each index closes at or above its call on any annual observation date; call level for each index will be 95% of the initial level for the first call date and step down by 5% every call date after that
|
| Payout at maturity: | Par plus 37% if each index finishes at or above 75% of its initial level; if the worst performing index declines by more than 25% but not by more than 30%, par; if the worst performing index finishes below its 70% downside threshold level, investors will be fully exposed to the decline
|
| Initial levels: | 3,340.97 for S&P, 1,497.271 for Russell, 11,087.4 for Nasdaq
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| Downside thresholds: | 2,338.679 for S&P, 1,048.09 for Russell, 7,761.18 for Nasdaq; 70% of initial levels
|
| Pricing date: | Sept. 11
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| Settlement date: | Sept. 16
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.625%
|
| Cusip: | 61771B3U6
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