Published on 3/19/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.04 million callable contingent income notes on indexes
By Sarah Lizee
Olympia, Wash., March 19 – Morgan Stanley Finance LLC priced $1.04 million of callable contingent income securities due March 19, 2024 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.
Each quarter, the notes will pay a contingent coupon at the rate of 8.6% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par.
If any index finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing index from its initial level.
Beginning March 19, 2020, the notes will be callable quarterly at par.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
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| Underlying indexes: | Dow Jones Industrial Average, Russell 2000 index and Nasdaq-100 index
|
| Amount: | $1.04 million
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| Maturity: | March 19, 2024
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| Coupon: | 8.6% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below downside threshold, full exposure to decline of least-performing index from its initial level
|
| Call option: | Starting March 19, 2020, notes are callable at par quarterly
|
| Initial levels: | 25,709.94 for Dow, 1,549.635 for Russell and 7,243.014 for Nasdaq
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| Coupon barriers: | 17,996.958 for Dow, 1,084.745 for Russell and 5,070.110 for Nasdaq; 70% of initial levels
|
| Downside thresholds: | 15,425.964 for Dow, 929.781 for Russell and 4,345.808 for Nasdaq; 60% of initial levels
|
| Pricing date: | March 14
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| Settlement date: | March 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.35%
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| Cusip: | 61768D2T1
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