Published on 10/10/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million autocallable jump securities on Stoxx, Russell
By Kiku Steinfeld
Chicago, Oct. 10 – Morgan Stanley Finance LLC priced $1 million of 0% jump securities with autocallable feature due Sept. 23, 2024 linked to the worst performing of the Euro Stoxx 50 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
After one year, the notes will be called at par plus an annual premium of 8% if each index closes at or above its call threshold on any annual determination date other than the final one. The call threshold is 100% of the initial level for the first determination date, 95% of the initial level for the second date, 80% of the initial level for the third and 75% for the fourth.
The payout at maturity will be $1,400 per each $1,000 principal amount if each index finishes at or above 75% of its initial level. If the worst performing index declines by more than 25%, the payout will be par. If the worst performing index finishes below its 60% downside threshold level, investors will be fully exposed to its decline. Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | Euro Stoxx 50 index and Russell 2000 index
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| Amount: | $1,000,000
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| Maturity: | Sept. 23, 2024
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| Coupon: | 0%
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| Price: | Par
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| Call: | After one year, at par plus 8% per year if each index closes at or above applicable call threshold on any annual determination date other than final one
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| Payout at maturity: | If each index finishes at or above initial level, par plus $1,400 per each $1,000 principal amount; if worst performing index falls by up to 25%, par; if worst performing index falls below its 60% downside threshold level, full exposure to decline
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| Initial levels: | 1,568.344 for Stoxx, 3,528.04 for Russell
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| Call thresholds | 100% of initial level on Sept. 21, 2020, 95% of initial level on Sept. 20, 2021, 80% of initial level on Sept. 19, 2022, 75% of initial level on Sept. 18, 2023
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| Downside thresholds: | 2,116.824 for Stoxx, 941.006 for Russell; 60% of initial levels
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| Pricing date: | Sept.18
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| Settlement date: | Sept. 23
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.025%
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| Cusip: | 61769HVU6
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