Published on 12/17/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $770,000 contingent income autocalls on Nasdaq, Russell, S&P
By Wendy Van Sickle
Columbus, Ohio, Dec. 17 – Morgan Stanley Finance LLC priced $770,000 of contingent income autocallable securities due Dec. 12, 2023 tied to the Nasdaq-100 index, the Russell 2000 index and the Dow Jones 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% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date after six months.
If the lowest-performing index finishes at or above its downside threshold level, 60% 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
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and S&P 500 index
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| Amount: | $770,000
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| Maturity: | Dec. 12, 2023
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| Coupon: | 6% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
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| 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
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| Call option: | At par if each index closes at or above its initial level on any quarterly determination date after six months.
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| Initial levels: | 12,596.47 for Nasdaq, 1,891.252 for Russell, 3,691.96 for S&P
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| Coupon barriers: | 7,557.882 for Nasdaq, 1,134.751 for Russell, 2,215.176 for S&P; 60% of initial levels
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| Downside threshold levels: | 7,557.882 for Nasdaq, 1,134.751 for Russell, 2,215.176 for S&P; 60% of initial levels
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| Pricing date: | Dec. 9
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| Settlement date: | Dec. 14
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61771ETA6
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