Published on 8/18/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.2 million contingent income autocalls on index, ETF
By William Gullotti
Buffalo, N.Y., Aug. 18 – Morgan Stanley Finance LLC priced $1.2 million of contingent income autocallable securities due Nov. 17, 2022 linked to the performance of the Russell 2000 index and the Invesco QQQ Trust, Series 1, according to a 424B2 filed with the Securities and Exchange Commission.
The securities are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 7% if each underlier closes at or above its 80% coupon barrier on the relevant observation date.
The notes will be called at par plus coupon if each underlier closes at or above its initial level on any monthly review date after six months.
The payout at maturity will be par plus any coupon due unless any underlier finishes below its 75% downside threshold, in which case investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Issue: | Contingent income autocallable securities
|
| Guarantor: | Morgan Stanley
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| Underlying assets: | Russell 2000 index, Invesco QQQ Trust, Series 1
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| Amount: | $1,195,000
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| Maturity: | Nov. 17, 2022
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| Coupon: | 7% annualized, payable monthly if each underlier closes at or above coupon barrier on the relevant review date
|
| Price: | Par
|
| Payout at maturity: | If each underlier finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing underlier from its initial level
|
| Call: | At par plus coupon if each underlier closes at or above its initial level on any monthly call date after six months
|
| Initial levels: | $367.53 for ETF, 2,244.073 for Russell
|
| Coupon barrier levels: | $294.024 for ETF, 1,795.258 for Russell; 80% of initial levels
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| Downside thresholds: | $275.648 for ETF, 1,683.055 for Russell; 75% of initial levels
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| Pricing date: | Aug. 12
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| Settlement date: | Aug. 17
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61773FKX0
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