Published on 11/16/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $9.08 million contingent income buffered autocalls on indexes
By Taylor Fox
New York, Nov. 16 – Morgan Stanley Finance LLC priced $9.08 million of contingent income buffered autocallable securities due Oct. 30, 2025 linked to the lesser performing of the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 6% per year if each index closes at or above its coupon threshold, 80% of its initial level, on the determination date for that period.
After one year, the notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly redemption determination date.
The payout at maturity will be par plus the coupon unless either index finishes below its buffer level, 85% of its initial level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines beyond 15%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income buffered autocallable securities
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| Underlying indexes: | Nasdaq-100 index and Russell 2000 index
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| Amount: | $9,084,000
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| Maturity: | Oct. 30, 2025
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| Coupon: | 6% per year, payable monthly if each underlier closes at or above its coupon threshold on determination date for that period
|
| Price: | Par
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| Payout at maturity: | Par plus the coupon unless either index finishes below its buffer level, in which case investors will lose 1% for every 1% that lesser-performing underlier declines beyond 15%
|
| Call: | After one year, automatically at par plus coupon if each index closes at or above its initial level on any quarterly redemption determination date
|
| Initial levels: | 11,142.76 for Nasdaq, 1,543.275 for Russell
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| Coupon thresholds: | 8,914.208 for Nasdaq, 1,234.62 for Russell; 80% of initial levels
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| Buffer levels: | 9,471.346 for Nasdaq, 1,311.784 for Russell; 85% of initial levels
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| Pricing date: | Oct. 28
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| Settlement date: | Oct. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.85%
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| Cusip: | 61771EEJ3
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