Published on 12/13/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.3 million autocallable jump securities on Russell, Dow, S&P
By Kiku Steinfeld
Chicago, Dec. 14 – Morgan Stanley Finance LLC priced $1.3 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 will be guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 10.5% if each index closes at or above its call threshold level, 95% of its initial level, on any semiannual observation date after one year.
At maturity, if the notes have not been called and all indexes finish at or above their call threshold levels, the payout will be par plus 52.5%.
If the worst performing index finishes below its call threshold level but at or above its downside threshold level, 75% of its initial level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performer.
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: | $1,302,000
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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 10.5% if each index closes at or above its call threshold on any semiannual observation date after one year
|
| Payout at maturity: | Par plus 52.5% if all indexes finish at or above their call threshold level; if worst performing index finishes below its call threshold level but at or above its downside threshold level, par; otherwise, exposure to decline of worst performer
|
| Initial levels: | 3,621.63 for S&P, 29,638.64 for Dow and 1,819.816 for Russell
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| Call threshold levels: | 3,440.549 for S&P, 28,156.708 for Dow and 1,728.825 for Russell; 95% of initial levels
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| Downside thresholds: | 2,716.223 for S&P, 22,228.98 for Dow and 1,364.862 for Russell; 75% 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: | 61771EMA3
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