Published on 8/27/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $7.02 million contingent income autocalls on Nasdaq, S&P
By Sarah Lizee
Olympia, Wash., Aug. 27 – Morgan Stanley Finance LLC priced $7.02 million of contingent income autocallable securities due Aug. 28, 2025 linked to the least performing of the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 8.2% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that month.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date after six months.
The payout at maturity will be par unless either index closes below its 60% downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Nasdaq-100 index, S&P 500 index
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| Amount: | $7,021,000
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| Maturity: | Aug. 28, 2025
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| Coupon: | 8.2% per year, payable monthly if each index closes at or above barrier level on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless either index closes below its downside threshold, in which case 1% loss for every 1% that least-performing index declines from its initial level
|
| Call: | Automatically at par if each index closes at or above its initial level on any quarterly determination date after six months
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| Initial index levels: | 3,443.62 for S&P, 11,721.81 for Nasdaq
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| Coupon barrier levels: | 2,410.534 for S&P, 8,205.267 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 2,066.172 for S&P, 7,033.086 for Nasdaq; 60% of initial levels
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| Pricing date: | Aug. 25
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| Settlement date: | Aug. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.65%
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| Cusip: | 61771BE34
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