Published on 3/19/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.38 million callable contingent income notes on indexes
By Wendy Van Sickle
Columbus, Ohio, March 19 – Morgan Stanley Finance LLC priced $1.38 million of callable contingent income securities due March 6, 2023 tied to the worst performing of the Dow Jones industrial average, S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 11.15% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be callable at par quarterly after six months.
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 the 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.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | Dow Jones industrial average, S&P 500 index, Russell 2000 index
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| Amount: | $1,375,000
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| Maturity: | March 6, 2023
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| Coupon: | 11.15% 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; 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 on any quarterly redemption date after six months
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| Initial levels: | 3,901.82 for S&P, 2,275.321 for Russell, 1,317.85 for Dow
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| Coupon barrier levels: | 2,731.274 for S&P, 1,592.725 for Russell, 22,074.857 for Dow; 70% of initial levels
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| Downside threshold levels: | 2,731.274 for S&P, 1,592.725 for Russell, 22,074.857 for Dow; 70% of initial levels
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| Pricing date: | March 1
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| Settlement date: | March 4
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61771VFZ8
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