Published on 11/2/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.9 million contingent income autocallables on indexes
By Taylor Fox
New York, Nov. 2 – Morgan Stanley Finance LLC sold $1.9 million of contingent income autocallable securities due April 12, 2022 tied to the worst performing of the Russell 2000 index, the S&P 500 index and the Nasdaq-100 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 9.5% 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 six months.
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, S&P 500 index and Nasdaq-100 index
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| Amount: | $1.9 million
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| Maturity: | April 12, 2022
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| Coupon: | 9.5% 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 any 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 after six months
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| Initial levels: | 3,419.45 for S&P, 11,503.19 for Nasdaq and 1,611.041 for Russell
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| Coupon thresholds: | 2,393.615 for S&P, 8,052.233 for Nasdaq and 1,127.729 for Russell, 70% of initial levels
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| Downside threshold levels: | 2,222.643 for S&P, 7,477.074 for Nasdaq and 1,047.177 for Russell, 65% of initial levels
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| Pricing date: | Oct. 7
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| Settlement date: | Oct. 13
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61771EBU1
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