Published on 6/9/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.3 million callable contingent income buffered notes on indexes
By William Gullotti
Buffalo, N.Y., June 9 – Morgan Stanley Finance LLC priced $1.3 million of callable contingent income buffered securities due Aug. 16, 2024 linked to the least 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.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 9.25% per year if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date that month.
After six months, the notes may be called at par on any quarterly date.
If each index finishes at or above its buffer level, 80% of its initial level, the payout at maturity will be par plus the final coupon.
If any index finishes below its downside threshold, investors will lose 1.25% for every 1% decline of the lesser performing index beyond 20%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income buffered securities
|
| Underlying indexes: | Dow Jones industrial average, Russell 2000 and Nasdaq-100
|
| Amount: | $1,300,000
|
| Maturity: | Aug. 16, 2024
|
| Coupon: | 9.25% per year, payable monthly if each index closes at or above coupon barrier level on observation date that month
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below buffer level, investors will lose 1.25% for every 1% decline of the lesser performing index beyond 20%
|
| Call option: | After six months, at par on any quarterly date
|
| Initial levels: | 13,109.15 for Nasdaq, 34,021.45 for Dow, 2,170.95 for Russell
|
| Coupon barrier levels/buffer levels: | 10,487.32 for Nasdaq, 27,217.16 for Dow, 1,736.76 for Russell; 80% of initial levels
|
| Pricing date: | May 13
|
| Settlement date: | May 18
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.1%
|
| Cusip: | 61771VU40
|
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