Published on 3/10/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $8 million contingent income buffered autocalls on indexes
By Taylor Fox
New York, March 10 – Morgan Stanley Finance LLC sold $8 million of contingent income buffered autocallable securities due Feb. 29, 2024 tied to the worst performing of the Russell 2000 index, the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 14.25% per year if each index closes at or above its coupon threshold level, 80% of its initial level, on the related determination date.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any monthly redemption determination date after three months.
If the final level of each index is greater than or equal to 80% of its initial level, the payout at maturity will be par plus the last contingent coupon. Otherwise, investors will lose 1.25% for every 1% that the least-performing index declines beyond the 20% buffer.
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: | Contingent income buffered autocallable securities
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| Underlying indexes: | Russell 2000 index, S&P 500 index and Nasdaq-100 index
|
| Amount: | $7,995,000
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| Maturity: | Feb. 29, 2024
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| Coupon: | 14.25% per year, payable each month if each index closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
|
| Payout at maturity: | Par plus any coupon unless any index finishes below buffer level, in which case investors will lose 1.25% for each 1% decline of the worst performing index beyond the 20% buffer
|
| Call: | Automatically at par plus coupon if each index closes at or above initial level on any monthly redemption determination date after three months
|
| Initial levels: | 2,201.051 for Russell, 12,909.44 for Nasdaq and 3,811.15 for S&P
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| Coupon thresholds: | 1,760.841 for Russell, 10,327.552 for Nasdaq and 3,048.92 for S&P; 80% of initial levels
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| Buffer levels: | 1,760.841 for Russell, 10,327.552 for Nasdaq and 3,048.92 for S&P; 80% of initial levels
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| Pricing date: | Feb. 26
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| Settlement date: | March 3
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61771VDD9
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