Published on 11/6/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million callable contingent income securities linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 6 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due Nov. 1, 2023 linked to the Nasdaq-100 index, the Dow Jones industrial average and the S&P 500 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 8% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that quarter.
Beginning April 30, 2021, the notes will be callable at par on any quarterly redemption date.
The payout at maturity will be par if all three indexes finish above 70% of their initial levels.
Otherwise, investors will be exposed to the decline of the worst performer.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying indexes: | Nasdaq-100 index, Dow Jones industrial average and S&P 500 index
|
| Amount: | $1 million
|
| Maturity: | Nov. 1, 2023
|
| Coupon: | 8% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that quarter
|
| Price: | Par
|
| Payout at maturity: | Par if no index finishes below downside threshold level; otherwise exposure to decline of worst performer with a maximum payout of par
|
| Call option: | Beginning April 30, 2021 at par on any quarterly redemption date
|
| Initial levels: | 27,463.19 for Dow, 11,598.95 for Nasdaq, 3,390.68 for S&P
|
| Coupon barriers: | 19,224.233 for Dow, 8,119.265 for Nasdaq, 2,373.476 for S&P; 70% of initial levels
|
| Downside threshold levels: | 19,224.233 for Dow, 8,119.265 for Nasdaq, 2,373.476 for S&P; 70% of initial levels
|
| Pricing date: | Oct. 27
|
| Settlement date: | Oct. 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.45%
|
| Cusip: | 61771EEK0
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
