Published on 4/19/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.09 million contingent income autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, April 19 – Morgan Stanley Finance LLC priced $3.09 million of contingent income autocallable securities due Oct. 5, 2022 linked to the least performing of the Nasdaq-100 index, the Russell 2000 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 month, the notes will pay a contingent coupon at the rate of 11.75% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that month.
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 initial level and any index ever closes 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: | Russell 2000 index, Dow Jones industrial average, Nasdaq-100 index
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Amount: | $3,085,000
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Maturity: | Oct. 5, 2022
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Coupon: | 11.75% per year, payable monthly if each index closes at or above coupon barrier level on determination date for that month
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Price: | Par
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Payout at maturity: | Par plus any coupon due unless any index finishes below its initial level and any index ever closes 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 call determination after six months
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Initial levels: | 2,220.519 for Russell, 13,091.44 for Nasdaq, 32,981.55 for Dow
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Coupon barrier levels: | 1,554.363 for Russell, 9,164.008 for Nasdaq, 23,087.085 for Dow, 70% of initial levels
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Downside thresholds: | 1,554.363 for Russell, 9,164.008 for Nasdaq, 23,087.085 for Dow, 70% of initial levels
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Pricing date: | March 31
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Settlement date: | April 5
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.5%
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Cusip: | 61771VCZ1
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