Published on 9/14/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5.06 million callable contingent income securities on indexes
By William Gullotti
Buffalo, N.Y., Sept. 14 – Morgan Stanley Finance LLC sold $5.06 million of callable contingent income securities due March 7, 2024 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 7.4% 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 plus any coupon due on any quarterly observation date.
If the notes are not called and each index finishes at or above its coupon threshold, the payout at maturity will be par plus the final coupon.
If the worst performer falls below the coupon threshold but finishes at or above its 60% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the worst performer 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: | $5,062,000
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| Maturity: | March 7, 2024
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| Coupon: | 7.4% per year, payable monthly if each index closes at or above its coupon threshold level on the related determination date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each index finishes at or above coupon threshold; if the worst performer declines below coupon threshold but finishes at or above downside threshold, par; otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level
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| Call option: | At par plus any coupon due on any quarterly observation date
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| Initial levels: | 15,652.86 for Nasdaq, 2,292.048 for Russell, 4,535.43 for S&P
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| Coupon threshold levels: | 11,739.645 for Nasdaq, 1,719.036 for Russell, 3,401.573 for S&P; 75% of initial levels
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| Downside threshold levels: | 9,391.716 for Nasdaq, 1,375.229 for Russell, 2,721.258 for S&P; 60% of initial levels
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| Pricing date: | Sept. 3
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| Settlement date: | Sept. 9
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61773FVW0
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