Published on 8/27/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 contingent income autocalls on Dow, Russell, S&P
By William Gullotti
Buffalo, N.Y., Aug. 27 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Dec. 29, 2023 tied to the worst performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 5.5% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any monthly call determination date after six months.
If the lowest-performing index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the final index value of the lowest-performing index.
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: | Contingent income autocallable securities
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index, S&P 500 index
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| Amount: | $250,000
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| Maturity: | Dec. 29, 2023
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| Coupon: | 5.5% per year, payable monthly if each index closes at or above coupon barrier level on observation date that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final coupon; otherwise, full exposure to decline of lowest-performing index from its initial level
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| Call: | At par plus coupon if each index closes at or above its initial level on any monthly call determination date after six months
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| Initial levels: | 34,196.82 for Dow, 2,333.622 for Russell, 4,266.49 for S&P
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| Coupon barriers: | 23,937.774 for Dow, 1,633.535 for Russell, 2,986.543 for S&P; 70% of initial levels
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| Downside threshold levels: | 23,937.774 for Dow, 1,633.535 for Russell, 2,986.543 for S&P; 70% of initial levels
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| Pricing date: | June 24
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| Settlement date: | June 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61773FAW3
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