Published on 9/22/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $25.04 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 22 – Morgan Stanley Finance LLC priced $25.04 million of trigger callable contingent yield notes with daily coupon observation due March 23, 2023 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 11.01% if each index closes at or above its coupon barrier level, 65% of its initial level, on every day that quarter.
The notes will be callable at par of $10 plus any coupon on any quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold level, 55% of its initial level, the payout at maturity will be par plus any final coupon. Otherwise, investors will lose 1% for every 1% decline of the least-performing index.
Morgan Stanley & Co. LLC is the agent, and UBS Financial Services Inc. is acting as dealer.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Nasdaq-100, Russell 2000, S&P 500
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| Amount: | $25,042,000
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| Maturity: | March 23, 2023
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| Coupon: | 11.01% per year, payable quarterly if each index closes at or above its barrier level on every day that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any coupon unless any index finishes below downside threshold level, in which case 1% loss for every 1% decline of worst performing index
|
| Call option: | At par plus any coupon on any quarterly observation date other than final one
|
| Initial levels: | 3,319.47 for S&P, 1,536.779 for Russell, 10,936.98 for Nasdaq
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| Coupon barrier levels: | 2,157.66 for S&P, 998.906 for Russell, 7,109.04 for Nasdaq; 65% of initial levels
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| Downside thresholds: | 1,825.71 for S&P, 845.288 for Russell, 6,015.34 for Nasdaq; 55% of initial levels
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| Pricing date: | Sept. 18
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| Settlement date: | Sept. 23
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
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| Fees: | 1%
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| Cusip: | 61771D472
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