Published on 10/27/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $300,000 callable contingent income notes on Stoxx, Russell, S&P
By Wendy Van Sickle
Columbus, Ohio, Oct. 27 – Morgan Stanley Finance LLC priced $300,000 of callable contingent income securities due Oct. 24, 2022 tied to the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 7.7% per year if each index closes at or above its coupon barrier level, 65% of its initial level, on the observation date that period.
The notes will be callable at par plus any coupon on any quarterly redemption date.
If the lowest-performing index finishes at or above its downside threshold level, 65% of its initial level, the payout at maturity will be par plus any coupon due. If the lowest-performing index finishes below its downside threshold 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: | Callable contingent income securities
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| Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index and S&P 500 index
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| Amount: | $300,000
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| Maturity: | Oct. 24, 2022
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| Coupon: | 7.7% per year, payable quarterly 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 downside threshold level, par; 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 option: | At par plus any coupon, callable quarterly
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| Initial levels: | 3,426.92 for S&P, 1,613.628 for Russell, 3,242.51 for Stoxx
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| Coupon barriers: | 2,227.498 for S&P, 1,048.858 for Russell, 2,107.632 for Stoxx; 65% of initial levels
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| Downside threshold levels: | 2,227.498 for S&P, 1,048.858 for Russell, 2,107.632 for Stoxx; 65% of initial levels
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| Pricing date: | Oct. 19
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| Settlement date: | Oct. 22
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61771EDC9
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