Published on 5/20/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $388,000 callable contingent income notes linked to indexes
By Sarah Lizee
Olympia, Wash., May 20 – Morgan Stanley Finance LLC priced $388,000 of callable contingent income securities due May 19, 2022 tied to the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 9.5% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period.
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 the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
The notes will be callable at par on any quarterly redemption 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: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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Amount: | $388,000
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Maturity: | May 19, 2022
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Coupon: | 9.5% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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Call option: | At par on any quarterly redemption date
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Initial levels: | 2,863.70 for S&P, 1,256.992 for Russell, 23,685.42 for Dow
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Coupon barriers: | 1,718.22 for S&P, 754.195 for Russell, 14,211.252 for Dow; 60% of initial levels
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Downside threshold levels: | 1,718.22 for S&P, 754.195 for Russell, 14,211.252 for Dow; 60% of initial levels
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Pricing date: | May 15
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Settlement date: | May 20
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Agent: | Morgan Stanley & Co. LLC
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Fees: | None
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Cusip: | 61771BDT8
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