Published on 2/4/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.11 million contingent income autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 4 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Jan. 31, 2025 tied to the least 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.
Each month, the notes will pay a contingent coupon at the rate of 5.1% per year if each index closes at or above its coupon threshold level, 70% 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 after one year.
The payout at maturity will be par plus the coupon unless any index ever closes below its 70% downside threshold on any day during the life of the notes, 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: | 1Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
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| Amount: | $1.11 million
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| Maturity: | Jan. 31, 2025
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| Coupon: | 5.1% per year, payable each month 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 coupon unless any index ever closes below its downside threshold on any day during the life of the notes, 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 after one year
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| Initial levels: | 1,699.635 for Russell, 28,722.85 for Dow, 9,090.933 for Nasdaq
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| Downside threshold levels: | 1,160.820 for Russell, 20,105.995 for Dow, 6,363.653 for Nasdaq, or 70% of initial levels
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| Coupon thresholds: | 1,160.820 for Russell, 20,105.995 for Dow, 6,363.653 for Nasdaq, or 70% of initial levels
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| Pricing date: | Jan. 28
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| Settlement date: | Jan. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4.25%
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| Cusip: | 61770FAX4
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