Published on 12/17/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.64 million callable contingent income notes on three indexes
By Taylor Fox
New York, Dec. 17 – Morgan Stanley Finance LLC priced $1.64 million of callable contingent income securities due Dec. 14, 2023 linked to the least performing of the S&P 500 index, the Russell 2000 index and the MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 10% per year if each asset closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If each asset finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par.
If any asset finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing asset from its initial level.
The notes will be callable quarterly at par after six months.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
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| Underlying assets: | S&P 500 index, Russell 2000 index and MSCI Emerging Markets index
|
| Amount: | $1,635,000
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| Maturity: | Dec. 14, 2023
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| Coupon: | 10% per year, payable quarterly if each asset closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | Par if each asset finishes at or above downside threshold; if any asset finishes below downside threshold, full exposure to decline of least-performing asset from its initial level
|
| Call option: | At par quarterly after six months
|
| Initial levels: | 3,663.46 for S&P, 1,911.697 for Russell and 1,257.66 for EM
|
| Coupon barriers: | 2,564.422 for S&P, 1,338.188 for Russell and 880.362 for EM; 70% of initial levels
|
| Downside thresholds: | 1,831.73 for S&P, 955.849 for Russell and 628.83 for EM; 50% of initial levels
|
| Pricing date: | Dec. 15
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| Settlement date: | Dec. 18
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.25%
|
| Cusip: | 61771EUA4
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