Published on 3/26/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocalls on indexes
By Kiku Steinfeld
Chicago, March 26 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due March 19, 2026 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, 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 10.25% per year if each index closes at or above its coupon barrier level, 80% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date after one year.
The payout at maturity will be par plus any coupon due unless any index finishes below its 80% 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: | Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
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Amount: | $1 million
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Maturity: | March 19, 2026
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Coupon: | 10.25% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter
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Price: | Par
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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
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Call: | Automatically at par if each index closes at or above its initial level on any quarterly determination
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Initial levels: | 32,825.95 for Dow, 2,319.518 for Russell, 13,152.28 for Nasdaq
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Barrier levels: | 26,260.76 for Dow, 1,855.614 for Russell, 10,521.824 for Nasdaq, 80% of initial levels
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Pricing date: | March 16
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Settlement date: | March 19
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.75%
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Cusip: | 61771VKN9
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