Published on 12/17/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million contingent income autocalls on three indexes
By Kiku Steinfeld
Chicago, Dec. 17 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Nov. 22, 2034 linked to the lesser performing of the Russell 2000 index, the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a fixed quarterly coupon at the rate of 7.75% per year. Beginning Feb. 15, 2022, the notes will pay a contingent quarterly coupon at the rate of 7.75% per year plus any previously unpaid coupons if each index closes at or above its initial level on the related observation date.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly observation date after two years.
The payout at maturity will be par unless either index finishes below its downside threshold level, 60% of its initial level, in which case investors will lose 1% for every 1% decline of the lesser-performing index.
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, Euro Stoxx 50 and S&P 500
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| Amount: | $1,000,000
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| Maturity: | Nov. 22, 2034
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| Coupon: | 7.75% fixed rate per year, paid quarterly; 7.75% per year plus any previously unpaid coupons, payable quarterly if each index closes at or above its initial level on any observation date beginning February 15, 2022
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| Price: | Par
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| Payout at maturity: | Par unless either index finishes below downside threshold level, in which case exposure to losses
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| Call: | Automatically at par plus coupon if each index closes at or above initial level on any quarterly observation date after two years
|
| Initial levels: | 3,120.46 for S&P, 3,711.61 for Stoxx, 1,596.454 for Russell
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| Contingent coupon levels: | 100% of initial levels
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| Downside threshold levels: | 1,872.276 for S&P, 2,226.966 for Stoxx, 957.872 for Russell, 60% of initial levels
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| Pricing date: | Nov. 15
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| Settlement date: | Nov. 22
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3%
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| Cusip: | 61769HQ57
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