Published on 1/21/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.15 million callable contingent income notes on indexes
By Kiku Steinfeld
Chicago, Jan. 21 – Morgan Stanley Finance LLC priced $2.15 million of callable contingent income securities due Jan. 20, 2026 linked to the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7.68% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
If the lowest-performing index finishes at or above its knock-in level, 68.5% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
The notes will be callable at par on any quarterly redemption date after six months.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and S&P 500 index
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| Amount: | $2,145,000
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| Maturity: | Jan. 20, 2026
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| Coupon: | 7.68% per year, payable quarterly if each index closes at or above coupon barrier level on observation date for that period.
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above knock-in level, par; otherwise, full exposure to decline of lowest-performing index from its initial level
|
| Call option: | At par on any quarterly redemption date after six months
|
| Initial levels: | 2,155.349 for Russell, 12,898.69 for Nasdaq, 3,795.54 for S&P
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| Coupon barriers: | 1,508.744 for Russell, 9,029.083 for Nasdaq, 2,656.878 for S&P, 70% of initial levels
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| Knock-in levels: | 1,476.414 for Russell, 8,835.603 for Nasdaq, 2,599.945 for S&P, 68.5% of initial levels
|
| Pricing date: | Jan. 14
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| Settlement date: | Jan. 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.125%
|
| Cusip: | 61771EE46
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