Published on 8/24/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.43 million callable contingent income securities on three indexes
By William Gullotti
Buffalo, N.Y., Aug. 24 – Morgan Stanley Finance LLC sold $2.43 million of callable contingent income securities due Aug. 22, 2025 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.
The notes will pay a contingent monthly coupon at the rate of 5.5% per year if each index closes at or above its coupon threshold level, 70% 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 monthly observation date after one year.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons if each index finishes at or above the coupon threshold.
If any index lags below the coupon threshold, but all indexes finish at or above the 60% 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
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| 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
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| Amount: | $2,432,000
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| Maturity: | Aug. 22, 2025
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| Coupon: | 5.5% per year, payable monthly if each index closes at or above its coupon threshold level on the related determination date; coupon payment events will also include previously unpaid coupons, if any
|
| Price: | Par
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| Payout at maturity: | If all indexes finish at or above coupon threshold, par plus final coupon and any previously unpaid coupons; if worst performer lags below coupon threshold but falls no more than 40%, par; otherwise, lose 1% for every 1% decline of the worst performer from its initial level
|
| Call option: | At par on any monthly observation date after one year
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| Initial levels: | 14,933.94 for Nasdaq, 2,132.42 for Russell, 4,405.8 for S&P
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| Coupon threshold levels: | 10,453.758 for Nasdaq, 1,492.694 for Russell, 3,084.06 for S&P; 70% of initial levels
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| Downside threshold levels: | 8,960.364 for Nasdaq, 1,279.452 for Russell, 2,643.48 for S&P; 60% of initial levels
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| Pricing date: | Aug. 19
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| Settlement date: | Aug. 24
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61773FRC9
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