Published on 3/28/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $7.75 million contingent income autocalls on Russell, Nasdaq, Dow
By William Gullotti
Buffalo, N.Y., March 28 – Morgan Stanley Finance LLC priced $7.75 million of contingent income autocallable securities due Nov. 1, 2022 tied to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 6.25% 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 automatically called at par plus coupon if each index closes at or above its initial level on any quarterly call determination date after six months.
If the lowest-performing index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the final index value of the lowest-performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index, Dow Jones industrial average
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| Amount: | $7,748,000
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| Maturity: | Nov. 1, 2022
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| Coupon: | 6.25% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; otherwise, full exposure to decline of lowest-performing index from its initial level
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| Call: | At par plus coupon if each index closes at or above its initial level on any quarterly call determination date, after six months
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| Initial levels: | 2,301.267 for Russell, 13,960.28 for Nasdaq, 33,984.93 for Dow
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| Coupon barrier levels: | 1,610.887 for Russell, 9,772.196 for Nasdaq, 23,789.451 for Dow; 70% of initial levels
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| Downside threshold levels: | 1,610.887 for Russell, 9,772.196 for Nasdaq, 23,789.451 for Dow; 70% of initial levels
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| Pricing date: | April 27, 2021
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| Settlement date: | April 30, 2021
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.48%
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| Cusip: | 61771VQZ6
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