Published on 10/20/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $6.74 million contingent income autocallable notes on indexes
By Taylor Fox
New York, Oct. 20 – Morgan Stanley Finance LLC priced $6.74 million of contingent income autocallable securities due Sept. 21, 2023 linked to the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that quarter.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly redemption date after six months.
If the lowest-performing index finishes at or above its barrier level, 70% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing index finishes below its barrier level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
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: | Contingent income autocallable securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $6,735,000
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| Maturity: | Sept. 21, 2023
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| Coupon: | 9% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par plus any coupon; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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| Call: | Automatically at par plus coupon on any quarterly redemption date after six months
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| Initial levels: | 1,542.598 for Russell, 11,080.95 for Nasdaq, 27,901.98 for Dow
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| Coupon barriers: | 1,079.819 for Russell, 7,756.665 for Nasdaq, 19,531.386 for Dow; 70% of initial levels
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| Downside threshold levels: | 1,079.819 for Russell, 7,756.665 for Nasdaq, 19,531.386 for Dow; 70% of initial levels
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| Pricing date: | Sept. 17
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| Settlement date: | Sept. 22
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61771B3S1
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