Published on 11/18/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.67 million callable contingent income notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 18 – Morgan Stanley Finance LLC priced $2.67 million of callable contingent income securities due Nov. 3, 2022 tied to 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 will pay a quarterly contingent coupon at the rate of 6.3% per year if each index closes at or above its coupon barrier level, 55% of its initial level, on the observation date that period.
The notes will be callable at par quarterly beginning May 5, 2021.
If the lowest-performing index finishes at or above its downside threshold level, 55% of its initial level, the payout at maturity will be par plus the final coupon. 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
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and S&P 500 index
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| Amount: | $2,669,000
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| Maturity: | Nov. 3, 2022
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| Coupon: | 6.3% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
|
| 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
|
| Call option: | At par on any quarterly redemption date beginning May 5, 2021
|
| Initial levels: | 11,052.95 for Nasdaq, 1,538.479 for Russell, 3,269.96 for S&P
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| Coupon barriers: | 6,079.123 for Nasdaq, 846.163 for Russell, 1,798.478 for S&P; 55% of initial levels
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| Downside threshold levels: | 6,079.123 for Nasdaq, 846.163 for Russell, 1,798.478 for S&P; 55% of initial levels
|
| Pricing date: | Oct. 30
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| Settlement date: | Nov. 4
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
|
| Cusip: | 61771EGJ1
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