Published on 8/30/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.42 million callable contingent income securities on three indexes
By William Gullotti
Buffalo, N.Y., Aug. 30 – Morgan Stanley Finance LLC sold $2.42 million of callable contingent income securities due Aug. 29, 2024 tied to the worst performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 8.6% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on the related determination date.
The notes will be callable at par on any quarterly observation date.
The payout at maturity will be par plus the coupon if each index finishes at or above its respective coupon threshold.
If the worst performer declines below the coupon threshold but finishes at or above its 65% 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: | Dow Jones industrial average, Nasdaq-100 index, Russell 2000 index
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| Amount: | $2,422,000
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| Maturity: | Aug. 29, 2024
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| Coupon: | 8.6% per year, payable quarterly if each index closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
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| Payout at maturity: | Par plus coupon if all indexes finish at or above coupon threshold; if worst performer finishes below coupon threshold but at or above downside threshold, par; otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level
|
| Call option: | At par on any quarterly observation date
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| Initial levels: | 35,366.26 for Dow, 2,230.906 for Russell, 15,357.68 for Nasdaq
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| Coupon threshold levels: | 26,524.695 for Dow, 1,673.18 for Russell, 11,518.26 for Nasdaq; 75% of initial levels
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| Downside threshold levels: | 22,988.069 for Dow, 1,450.089 for Russell, 9,982.492 for Nasdaq; 65% of initial levels
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| Pricing date: | Aug. 24
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| Settlement date: | Aug. 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61773FSX2
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