Published on 6/25/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.35 million callable contingent income securities on indexes
By William Gullotti
Buffalo, N.Y., June 25 – Morgan Stanley Finance LLC sold $1.35 million of callable contingent income securities due June 27, 2024 tied to the worst performing of the Nasdaq-100 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Monthly, the notes will pay a contingent coupon at the rate of 7.5% per year if each index closes at or above its coupon threshold level, 80% of its initial level, on the related determination date. Any previously unpaid coupons will also be paid.
The notes will be callable at par on any quarterly observation date after six months.
The payout at maturity will be par plus the coupon unless any index finishes below its 80% coupon threshold. If all indexes finishes at or above the 70% downside threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the least performing index from its initial level.
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: | Nasdaq-100 index, S&P 500 index, Russell 2000 index
|
| Amount: | $1,350,000
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| Maturity: | June 27, 2024
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| Coupon: | 7.5% per year, payable monthly if each index closes at or above its coupon threshold level on the related determination date; previously unpaid coupons will also be paid
|
| Price: | Par
|
| Call option: | At par on any quarterly observation date after six months
|
| Payout at maturity: | Par plus coupon unless any index finishes below its coupon threshold; if all indexes finishes at or above their downside threshold level, par; otherwise investors will be fully exposed to the performance of the least performing index from initial levels
|
| Initial levels: | 13,983.01 for Nasdaq, 2,314.691 for Russell, 4,223.7 for S&P
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| Coupon threshold levels: | 11,186.408 for Nasdaq, 1,851.753 for Russell, 3,378.96 for S&P; 80% of initial levels
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| Downside threshold levels: | 9,788.107 for Nasdaq, 1,620.284 for Russell, 2,956.59 for S&P; 70% of initial levels
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| Pricing date: | June 22
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| Settlement date: | June 25
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61773FAJ2
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