Published on 3/13/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $603,000 contingent income autocalls on indexes
By Kiku Steinfeld
Chicago, March 15 – Morgan Stanley Finance LLC priced $603,000 of contingent income autocallable securities due March 2, 2026 linked to the least performing of the Dow Jones industrial average, Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 6% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that period.
After one year, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless either index finishes below its 70% downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
Morgan Stanley & Co. LLC is the agent.
| 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: | Dow Jones industrial average, Nasdaq-100 index, Russell 2000 index
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| Amount: | $603,000
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| Maturity: | March 2, 2026
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| Coupon: | 6% per year, payable monthly if each index closes at or above barrier level on determination date for that period
|
| Price: | Par
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| Payout at maturity: | Par unless either index closes below its downside threshold, in which case 1% loss for every 1% that least-performing index declines from its initial level
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| Call: | After one year, automatically at par if each index closes at or above initial level on any quarterly determination date
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| Initial index levels: | 31,402.01 for Dow, 2,200.172 for Russell, 12,828.31 for Nasdaq
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| Coupon barrier levels: | 21,981.407 for Dow, 1,540.120 for Russell, 8,979.81 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 21,981.407 for Dow, 1,540.120 for Russell, 8,979.81 for Nasdaq; 70% of initial levels
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| Pricing date: | Feb. 25
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| Settlement date: | March 2
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.625%
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| Cusip: | 61771VBD1
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