Published on 10/4/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.43 million contingent income autocallables linked to indexes
By Angela McDaniels
Tacoma, Wash., Sept. 27 – Morgan Stanley Finance LLC priced $1.43 million of contingent income autocallable securities due Sept. 28, 2029 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7.1% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on the determination date for that quarter.
Beginning Sept. 30, 2020, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly redemption determination date.
The payout at maturity will be par unless any index finishes below its downside threshold level, 60% of its initial level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000, S&P 500 and Dow Jones industrial average
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| Amount: | $1.43 million
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| Maturity: | Sept. 28, 2029
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| Coupon: | 7.1% per year, payable quarterly if each index closes at or above coupon threshold on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below downside threshold level, in which case exposure to decline of least-performing index
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| Call: | Beginning Sept. 30, 2020, automatically at par if each index closes at or above initial level on any quarterly redemption determination date
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| Initial levels: | 1,533.236 for Russell 2000, 2,977.62 for S&P 500 and 26,891.12 for Dow
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| Coupon thresholds: | 1,149.995 for Russell 2000, 2,233.215 for S&P 500 and 20,168.340 for Dow, or 75% of initial levels
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| Downside thresholds: | 919.996 for Russell 2000, 1,786.572 for S&P 500 and 16,134.672 for Dow, or 60% of initial levels
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61769HUV5
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