Published on 1/24/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $250,000 callable contingent income securities linked to indexes
By Sarah Lizee
Olympia, Wash., Jan. 24 – Morgan Stanley Finance LLC priced $250,000 of callable contingent income securities due Jan. 23, 2025 linked to the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 6.5% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that month.
If the lowest-performing index finishes at or above its knock-in level, 60% of its initial level, the payout at maturity will be par plus the final coupon, if any. If the lowest-performing index finishes below its knock-in level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
Beginning Jan. 22, 2021, the notes will be callable at par on any interest payment date.
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: | Callable contingent income securities
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Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $250,000
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Maturity: | Jan. 23, 2025
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Coupon: | 6.5% per year, payable monthly if each index closes at or above coupon barrier level on observation date that month
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Price: | Par
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Payout at maturity: | If each index finishes at or above knock-in level, par; if any index finishes below knock-in level, full exposure to decline of lowest-performing index from its initial level
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Call option: | Beginning Jan. 22, 2021 at par on any interest payment date
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Initial levels: | 9,173.732 for Nasdaq, 1,699.635 for Russell, 29,348.10 for Nasdaq
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Coupon barriers: | 6,421.612 for Nasdaq, 1,189.745 for Russell, 20,543.67 for Dow; 70% of initial levels
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Knock-in levels: | 5,504.239 for Nasdaq, 1,019.781 for Russell, 17,608.86 for Dow; 60% of initial levels
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Pricing date: | Jan. 17
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Settlement date: | Jan. 23
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.625%
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Cusip: | 61770FBB1
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