Published on 11/15/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.7 million contingent income autocallables on S&P, Nasdaq
By Taylor Fox
New York, Nov. 16 – Morgan Stanley Finance LLC priced $1.7 million of contingent income autocallable securities due Oct. 27, 2022 linked to the worst performing of the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If both indexes close at or above the coupon barrier prices, 70% of the initial levels, on a quarterly determination date, the notes will pay a contingent payment that month at an annualized rate of 6.25%.
The notes will be called at par plus the contingent coupon if the worst performing index closes at or above its initial level on any quarterly determination date.
If the final level of the worst performer is greater than or equal to the 70% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final level is less than the initial level.
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 index: | S&P 500 index, Nasdaq-100 index
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| Amount: | $1.7 million
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| Maturity: | Oct. 27, 2022
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| Coupon: | 6.25% per year, payable quarterly if worst performing index closes at or above coupon barrier levels on determination date for that period
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| Price: | Par
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| Payout at maturity: | If final level of worst performer is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final level is less than initial level
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| Call: | At par plus contingent coupon if worst performing index closes at or above initial level on any quarterly determination date
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| Initial levels: | 11,692.57 for Nasdaq and 3,465.39 for S&P
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| Coupon barrier levels: | 8,184.799 for Nasdaq and 2,425.773 for S&P, 70% of initial levels
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| Downside thresholds: | 8,184.799 for Nasdaq and 2,425.773 for S&P, 70% of initial levels
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| Pricing date: | Oct. 23
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| Settlement date: | Oct. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61771ECU0
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