Published on 11/21/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $8.45 million callable contingent income notes on indexes, ETF
By Taylor Fox
New York, Nov. 23 – Morgan Stanley Finance LLC priced $8.45 million of callable contingent income securities due Nov. 8, 2024 tied to the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 12% per year if each underlier closes at or above its coupon barrier level, 80% of its initial level, on the observation date that period.
The notes will be callable at par quarterly starting after six months.
If the lowest-performing underlier 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 underlier finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing underlier 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 assets: | S&P 500 index, Russell 2000 index and iShares MSCI EAFE ETF
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| Amount: | $8,446,000
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| Maturity: | Nov. 8, 2024
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| Coupon: | 12% per year, payable quarterly if each underlier closes at or above coupon barrier level on observation date that period
|
| Price: | Par
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| Payout at maturity: | If each underlier finishes at or above downside threshold level, par; if any underlier finishes below downside threshold level, full exposure to decline of lowest-performing underlier from its initial level
|
| Call option: | At par on any quarterly redemption date after six months
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| Initial levels: | 3,510.45 for S&P, 1,660.046 for Russell, $66.07 for MSCI
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| Coupon barriers: | 2,808.36 for S&P, 1,328.037 for Russell, $52.856 for MSCI; 80% of initial levels
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| Downside threshold levels: | 1,930.748 for S&P, 913.025 for Russell, $36.339 for MSCI; 55% of initial levels
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| Pricing date: | Nov. 5
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| Settlement date: | Nov. 10
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61771EGB8
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