Published on 9/1/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $11.68 million callable contingent income notes on indexes
By Taylor Fox
New York, Sept. 1 – Morgan Stanley Finance LLC priced $11.68 million of callable contingent income securities due March 2, 2023 tied to the worst 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 quarterly contingent coupon at the rate of 10.3% 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 callable at par quarterly after six months.
If the lowest-performing index finishes at or above its downside threshold level, 65% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-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 and Nasdaq-100 index
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Amount: | $11,683,000
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Maturity: | March 2, 2023
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Coupon: | 10.3% per year, payable quarterly 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; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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Call option: | At par on any quarterly redemption date after six months
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Initial levels: | 3,811.15 for S&P, 2,201.051 for Russell, 12,909.44 for Nasdaq
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Coupon barrier levels: | 2,667.805 for S&P, 1,540.736 for Russell, 9,036.608 for Nasdaq; 70% of initial levels
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Downside threshold levels: | 2,477.248 for S&P, 1,430.683 for Russell, 8,391.136 for Nasdaq; 65% of initial levels
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Pricing date: | Feb. 26
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Settlement date: | March 3
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2%
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Cusip: | 61771VDN7
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