Published on 12/12/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.75 million autocallable jump securities on Dow, Russell, S&P
By Kiku Steinfeld
Chicago, Dec. 14 – Morgan Stanley Finance LLC priced $2.75 million of 0% jump securities with autocallable feature due Jan. 7, 2026 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 10.7% if each index closes at or above its call threshold level, 95% of its initial level, on any annual observation date.
If each index finishes at or above its call threshold level, the payout will be par plus 53.5%. If the worst performing index finishes below its call threshold level but at or above its downside threshold, 75% of its initial level, the payout will be par. If the worst performing index finishes below its downside threshold, investors will be fully exposed to the decline of that index from its initial level.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Jump securities with autocallable feature
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Underlying indexes: | Russell 2000 index, S&P 500 index and Dow Jones industrial average
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Amount: | $2,751,000
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Maturity: | Jan. 7, 2026
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Coupon: | 0%
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Price: | Par
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Call: | At par plus an annual premium of 10.7% if each index closes at or above its call threshold initial level on any annual observation date
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Payout at maturity: | If each index finishes at or above call threshold level, par plus 53.5%; if worst performing index finishes below call threshold level but at or above downside threshold, par; if worst performing index finishes below downside threshold, full exposure to decline of that index from initial level
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Initial levels: | 3,621.63 for S&P, 29,638.64 for Dow, 1,819.816 for Russell
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Downside thresholds: | 2,716.223 for S&P, 22,228.98 for Dow, 1,364.862 for Russell; 75% of initial levels
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Call threshold levels: | 3,440.549 for S&P, 28,156.708 for Dow, 1,728.825 for Russell; 95% of initial levels
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Pricing date: | Nov. 30
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Settlement date: | Dec. 3
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Agent: | Morgan Stanley & Co. LLC
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Fees: | None
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Cusip: | 61771ELF3
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