Published on 12/30/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million contingent income autocallables on Russell, Nasdaq, Dow
By Kiku Steinfeld
Chicago, Dec. 30 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Dec. 23, 2021 tied to the lesser performing of the Russell 2000 index, the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 7.6% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the determination date for that month.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly redemption determination date beginning March 19, 2020.
The payout at maturity will be par plus the coupon unless any index closes below its 70% downside threshold, in which case investors will be fully exposed to the performance of the least 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, Nasdaq-100, Dow Jones industrial average
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| Amount: | $1,000,000
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| Maturity: | Dec. 23, 2021
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| Coupon: | 7.6% per year, payable monthly if each index closes at or above coupon threshold level 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 its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
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| Call: | Automatically at par plus coupon if each index closes at or above initial level on any quarterly redemption determination date beginning March 19, 2020
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| Initial levels: | 1,667.094 for Russell 2000, 8,641.291 for Nasdaq-100, 28,376.96 for Dow
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| Downside threshold levels: | 1,166.966 for Russell 2000, 6,048.904 for Nasdaq-100, 19,863.872 for Dow, or 70% of initial levels
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| Coupon thresholds: | 1,166.966 for Russell 2000, 6,048.904 for Nasdaq-100, 19,863.872 for Dow, or 70% of initial levels
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| Pricing date: | Dec. 19
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| Settlement date: | Dec. 24
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61769H5Q4
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