Published on 8/21/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $8.67 million callable contingent income securities on three indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 23 – Morgan Stanley Finance LLC priced $8.67 million of callable contingent income securities due Aug. 17, 2023 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.8% if each index closes at or above its coupon barrier level, 75% of the initial level, on the observation date for that period.
The notes are callable at par at the option of the issuer on any quarterly early redemption date.
If the notes are not called and each index finishes at or above its 75% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% 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
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| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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| Amount: | $8,671,000
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| Maturity: | Aug. 17, 2023
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| Coupon: | 8.8% annual rate, payable quarterly if each index closes at or above coupon barrier level on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus final coupon; otherwise, 1% loss for each 1% decline of the least-performing index from initial level
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| Call option: | At par at the option of the issuer on any quarterly early redemption date
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| Initial levels: | 4,468.0 for S&P, 2,223.108 for Russell, 15,736.68 for Nasdaq
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| Coupon barrier levels: | 3,351.0 for S&P, 1,667.331 for Russell, 11,352.51 for Nasdaq; 75% of initial prices
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| Barrier levels: | 3,351.0 for S&P, 1,667.331 for Russell, 11,352.51 for Nasdaq; 75% of initial prices
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| Pricing date: | Aug. 13
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| Settlement date: | Aug. 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61773FPV9
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