Published on 10/14/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $5.54 million callable contingent income securities on Nasdaq, Russell, S&P
By Wendy Van Sickle
Columbus, Ohio, Oct. 14 – Morgan Stanley Finance LLC priced $5.54 million of callable contingent income securities due July 8, 2025 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Nasdaq-100 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 the rate of 10.85% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that quarter.
The notes will be callable at par quarterly.
The payout at maturity will be par any index finishes below its 65% downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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: | Russell 2000 index, S&P 500 index and Nasdaq-100 index
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| Amount: | $5,542,000
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| Maturity: | July 8, 2025
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| Coupon: | 10.85% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless any index finishes below its downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level
|
| Call option: | Quarterly at par
|
| Initial levels: | 3,348.44 for S&P, 1,539.297 for Russell, 11,255.69 for Nasdaq
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| Coupon barriers: | 2,343.908 for S&P, 1,077.508 for Russell, 7,878.983 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 2,176.486 for S&P, 1,000.543 for Russell, 7,316.199 for Nasdaq; 65% of initial levels
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| Pricing date: | Oct. 2
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| Settlement date: | Oct. 7
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
|
| Cusip: | 61771B5G5
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