Published on 11/20/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 contingent income autocalls on Nasdaq, Russell, Dow
By Kiku Steinfeld
Chicago, Nov. 20 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due May 3, 2021 linked to the lesser 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 are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 7% per year if each underlier closes at or above its coupon threshold, 70% of its initial level, on the determination date for that month.
After six months, the notes will be automatically called at par plus the coupon if each underlier closes at or above its initial level on a quarterly determination date.
The payout at maturity will be par plus the coupon unless any index closes below its downside threshold level, 70% of its initial level, on any day during the life of the notes, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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, Nasdaq-100 and Dow Jones industrial average
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Amount: | $250,000
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Maturity: | May 3, 2021
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Coupon: | 7% per year, payable monthly if each underlier closes at or above its coupon threshold on determination date for that month
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Price: | Par
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Payout at maturity: | Par plus coupon unless any index closes below downside threshold on any day during life of notes, in which case investors will lose 1% for every 1% that least-performing index declines
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Call: | After six months, automatically at par plus coupon if each underlier closes at or above its initial level on any quarterly determination date
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Initial levels: | 1,571.933 for Russell, 8,110.669 for Nasdaq, 27,090.72 for Dow
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Coupon thresholds: | 1,100.353 for Russell, 5,677.468 for Nasdaq, 18,963.504 for Dow; 70% of initial levels
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Downside threshold levels: | 1,100.353 for Russell, 5,677.468 for Nasdaq, 18,963.504 for Dow; 70% of initial levels
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Pricing date: | Oct. 28
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Settlement date: | Oct. 31
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.25%
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Cusip: | 61769HYP4
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