Published on 2/27/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $616,000 jump securities with autocallable feature on indexes
By Kiku Steinfeld
Chicago, Feb. 28 – Morgan Stanley Finance LLC priced $616,000 of 0% jump securities with autocallable feature due Sept. 11, 2026 linked 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 be guaranteed by Morgan Stanley.
The notes will be called at par plus an annualized call premium of 14% if each index closes above its call level on the corresponding yearly observation date. The call level will start at 105% of each index’s initial level, stepping up by 5% per year.
At maturity, if all indexes finish at or above their initial levels, the payout will be par plus the return of the least performing index.
If the worst performing index finishes below its initial level but at or above its 70% downside threshold level, the payout will be par. If the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline of that index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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| Amount: | $616,000
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| Maturity: | Sept. 11, 2026
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If all indexes finish above initial levels, par plus return of the least performing index; if the worst performing index finishes below its initial level but at or above its downside threshold level, par; if the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline of that index
|
| Call: | At par plus an annualized call premium of 14% if each index closes at or above its call level on the corresponding yearly observation date; call level will be 105% initially, stepping up by 5% each year
|
| Initial levels: | 15,620.85 for Nasdaq, 2,249.726 for Russell, 4,514.07 for S&P 500
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| Downside thresholds: | 10,934.595 for Nasdaq, 1,574.808 for Russell, 3,159.849 for S&P 500; 70% of initial levels
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 13
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61773FA52
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