Published on 2/25/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.56 million contingent income autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 25 – Morgan Stanley Finance LLC priced $3.56 million of contingent income autocallable securities due Feb. 15, 2024 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the S&P 500 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 8.6% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the determination date for that period.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly call determination date after six months.
The payout at maturity will be par plus any coupon due unless any index finishes below its 60% downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
The agent is Morgan Stanley & Co. LLC.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and S&P 500 index
|
| Amount: | $3,557,000
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| Maturity: | Feb. 15, 2024
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| Coupon: | 8.6% per year, payable quarterly if each index closes at or above coupon barrier level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | Par plus any coupon due unless any index finishes below its downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level
|
| Call: | Automatically at par if each index closes at or above its initial level on any quarterly call determination date after six months
|
| Initial index levels: | 2,285.317 for Russell, 13,734.35 for Nasdaq and 3,916.38 for S&P
|
| Coupon threshold levels: | 1,599.722 for Russell, 9,614.045 for Nasdaq and 2,741.466 for S&P; 70% of initial levels
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| Downside threshold levels: | 1,371.19 for Russell, 8,240.61 for Nasdaq and 2,349.828 for S&P; 60% of initial levels
|
| Pricing date: | Feb. 11
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| Settlement date: | Feb. 17
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.75%
|
| Cusip: | 61771E5K0
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