Published on 12/5/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.78 million contingent income buffered autocalls on indexes
By Taylor Fox
New York, Dec. 7 – Morgan Stanley Finance LLC priced $2.78 million of contingent income buffered autocallable securities due Nov. 29, 2023 linked to the lesser performing of the Russell 2000 index and the Nasdaq-100 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 5.25% per year if each underlier closes at or above its coupon threshold, 80% of its initial level, on the determination date for that month.
After one year, the notes will be automatically called at par plus the coupon if each underlier closes at or above its initial level on any quarterly redemption determination date after one year.
The payout at maturity will be par plus the coupon unless either underlier 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
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Guarantor: | Morgan Stanley
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Issue: | Contingent income buffered autocallable securities
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Underlying indexes: | Russell 2000 index and Nasdaq-100 index
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Amount: | $2,782,000
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Maturity: | Nov. 29, 2023
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Coupon: | 5.25% per year, payable monthly if each underlier closes at or above its coupon threshold on determination date for that month
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Price: | Par
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Payout at maturity: | Par plus the coupon unless either underlier finishes below its buffer level, in which case investors will lose 1% for every 1% that lesser-performing underlier declines beyond buffer
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Call: | After one year, automatically at par plus coupon if each underlier closes at or above its initial level on any quarterly redemption determination date after one year
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Initial levels: | 1,853.532 for Russell, 12,079.81 for Nasdaq
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Coupon thresholds: | 1,482.826 for Russell, 9,663.848 for Nasdaq; 80% of initial levels
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Buffer levels: | 1,575.502 for Russell, 10,267.839 for Nasdaq; 85% of initial levels
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Pricing date: | Nov. 24
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Settlement date: | Nov. 30
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.05%
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Cusip: | 61771ELB2
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