Published on 3/11/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $42.63 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, March 11 – Morgan Stanley Finance LLC priced $42.63 million of trigger callable contingent yield notes with daily coupon observation due June 12, 2025 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at the rate of 13.28% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on every day that period.
The notes will be callable at par of $10 plus any coupon due on any quarterly observation date.
If the notes are not called and each index finishes at or above its downside threshold level, 55% of its initial level, the payout at maturity will be par plus any final coupon due. Otherwise, investors will lose 1% for every 1% decline of the least-performing index.
Morgan Stanley & Co. LLC is the agent, and UBS Financial Services Inc. is acting as dealer
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index, Nasdaq-100 index
|
| Amount: | $42,626,900
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| Maturity: | June 12, 2025
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| Coupon: | 13.28% per year, payable quarterly if each index closes at or above its coupon barrier level on every day observation period
|
| Price: | Par of $10
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| Payout at maturity: | Par plus any final coupon due unless any index finishes below its downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level
|
| Call: | At par plus any coupon due on any quarterly call valuation date
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| Initial levels: | 13,267.61 for Nasdaq-100, 1,963.011 for Russell, 32,632.64 for Dow
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| Coupon barriers: | 9,287.33 for Nasdaq-100, 1,374.108 for Russell, 22,842.85 for Dow; 70% of initial levels
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| Downside thresholds: | 7,297.19 for Nasdaq-100, 1,079.656 for Russell, 17,947.95 for Dow; 55% of initial levels
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| Pricing date: | March 8
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| Settlement date: | March 11
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
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| Fees: | 1%
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| Cusip: | 61773Y144
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