Published on 5/5/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $28.39 million callable contingent income notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, May 5 – Morgan Stanley Finance LLC sold $28.39 million of callable contingent income securities due May 2, 2025 tied to the worst performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10.1% per year if each index closes at or above its coupon threshold level, 85% of its initial level, on the related determination date, plus any previously unpaid coupon.
The notes will be callable at par on any quarterly observation date after six months.
The payout at maturity will be par unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.
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: | Callable contingent income securities
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| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index and Russell 2000 index
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| Amount: | $28,386,000
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| Maturity: | May 2, 2025
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| Coupon: | 10.1% per year, payable quarterly if each index closes at or above its coupon threshold level on the related determination date, plus any previously unpaid coupon
|
| Price: | Par
|
| Call option: | At par on any quarterly observation date after six months
|
| Payout at maturity: | Par unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
|
| Initial levels: | 34,060.36 for Dow, 13,970.21 for Nasdaq, 2,295.456 for Russell
|
| Coupon barrier levels: | 28,951.306 for Dow, 11,874.679 for Nasdaq, 1,951.138 for Russell; 85% of initial levels
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| Trigger levels: | 20,436.216 for Dow, 8,382.126 for Nasdaq, 1,377.274 for Russell; 60% of initial levels
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| Pricing date: | April 30
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| Settlement date: | May 5
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.1%
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| Cusip: | 61771VE89
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