Published on 9/19/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $397,000 contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., Sept. 19 – Morgan Stanley Finance LLC priced $397,000 of contingent income autocallable securities due March 19, 2021 linked to the least 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.
Each month, the notes will pay a contingent coupon at the rate of 10% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the determination date for that month.
After six months, the notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly early redemption determination date.
The payout at maturity will be par unless any index ever closes below its downside threshold, 70% of its initial level, on any day during the life of the notes, in which case investors will receive par plus the return of the least-performing index, subject to a maximum payout of par.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000, Nasdaq-100 and Dow Jones industrial average
|
| Amount: | $397,000
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| Maturity: | March 19, 2021
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| Coupon: | 10% per year, payable monthly if each index closes at or above coupon barrier on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless any index ever closes below its downside threshold on any day during the life of the notes, in which case investors will receive par plus the return of the least-performing index, subject to a maximum payout of par
|
| Call: | After six months, automatically at par if each index closes at or above initial level on any quarterly call determination date
|
| Initial levels: | 1,584.597 for Russell 2000, 27,076.82 for Dow and 7,852.413 for Nasdaq
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| Coupon barriers: | 1,109.218 for Russell 2000, 18,953.774 for Dow and 5,496.689 for Nasdaq, or 70% of initial levels
|
| Downside thresholds: | 1,109.218 for Russell 2000, 18,953.774 for Dow and 5,496.689 for Nasdaq, or 70% of initial levels
|
| Pricing date: | Sept. 16
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| Settlement date: | Sept. 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1%
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| Cusip: | 61769HRU1
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