Published on 12/24/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.66 million jump securities with autocallable feature on indexes
By Taylor Fox
New York, Dec. 24 – Morgan Stanley Finance LLC priced $1.66 million of 0% jump securities with autocallable feature due Dec. 12, 2023 linked to the worst performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, 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 initial level on a quarterly observation date after six months. The final premium is 31.5%.
If the notes are not called, meaning the worst performer has finished below its initial level, and the worst performing index declines no more than 30%, the payout will be par. If the worst performing index finishes below its 70% downside threshold level, investors will be fully exposed to the decline.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Jump securities with autocallable feature
|
| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index and Russell 2000 index
|
| Amount: | $1,657,000
|
| Maturity: | Dec. 12, 2023
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | At par plus an annual premium of 10.5% if each index closes at or above its initial level on a quarterly observation date starting after six months
|
| Payout at maturity: | If not called because worst performer has decline from initial level and if it declines by no more than 30%, par; if the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline
|
| Initial levels: | 1,891.252 for Russell, 12,596.47 for Nasdaq, 30,069.79 for Dow
|
| Downside thresholds: | 1,323.876 for Russell, 8,817.529 for Nasdaq, 21,048.853 for Dow; 70% of initial levels
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 10
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61771ESR0
|
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