Published on 1/17/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $707,000 contingent income autocallables on indexes
By Kiku Steinfeld
Chicago, Jan. 17 – Morgan Stanley Finance LLC priced $707,000 of contingent income autocallable securities due Jan. 10, 2025 tied to the lesser performing of the Russell 2000 index, the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 6.8% per year if each index closes at or above its coupon threshold level, 65% of its initial level, on the related determination 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 redemption determination date starting July 7, 2020.
The payout at maturity will be par plus the coupon unless any index finishes below its 65% 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 index, Dow Jones industrial average and S&P 500 index
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| Amount: | $707,000
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| Maturity: | Jan. 10, 2025
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| Coupon: | 6.8% per year, payable each quarter if each index closes at or above its coupon threshold level on the related determination date
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| Price: | Par
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| Payout at maturity: | Par plus the coupon unless any index finishes 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 starting July 7, 2020
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| Initial levels: | 1,658.305 for Russell, 28,583.68 for Dow, 3,237.18 for S&P
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| Downside threshold levels: | 1,077.898 for Russell, 18,579.392 for Dow, 2,104.167 for S&P or 65% of initial levels
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| Coupon thresholds: | 1,077.898 for Russell, 18,579.392 for Dow, 2,104.167 for S&P, or 65% of initial levels
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| Pricing date: | Jan. 7
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| Settlement date: | Jan. 10
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61770FBR6
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