Published on 12/27/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $844,000 contingent income autocalls on S&P, Russell, Dow
By Kiku Steinfeld
Chicago, Dec. 30 – Morgan Stanley Finance LLC priced $844,000 of contingent income autocallable securities due Dec. 2, 2026 tied to the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 5.35% per year if each index closes at or above its coupon barrier level, 80% 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 one year.
If the lowest-performing index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus any 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 with Morgan Stanley Wealth Management as a selected dealer.
| 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: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $844,000
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| Maturity: | Dec. 2, 2026
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| Coupon: | 5.35% 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 plus any coupon; 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 one year.
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| Initial levels: | 3,638.35 for S&P, 1,855.270 for Russell, 29,910.37 for Dow
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| Coupon barriers: | 2,910.68 for S&P, 1,484.216 for Russell, 23,928.296 for Dow; 80% of initial levels
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| Downside threshold levels: | 2,546.845 for S&P, 1,298.689 for Russell, 20,937.259 for Dow; 70% of initial levels
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| Pricing date: | Nov. 27
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| Settlement date: | Dec. 2
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a selected dealer
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| Fees: | 0.4%
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| Cusip: | 61771EMR6
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