Published on 11/16/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.11 million contingent income autocallables on indexes
By Taylor Fox
New York, Nov. 16 – Morgan Stanley Finance LLC priced $1.11 million of contingent income autocallable securities due Nov. 5, 2021 linked 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.
The notes are guaranteed by Morgan Stanley.
The notes pay a contingent monthly coupon at an annual rate of 6.5% if all indexes close at or above their 62% coupon barrier levels on the observation date for that period.
After six months, the notes will be called at par plus the contingent coupon if each index closes at or above its initial price on any quarterly determination date.
The payout at maturity will be par unless any index finishes below its 62% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price for the worst performer.
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, the S&P 500 index and the Nasdaq-100 index
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| Amount: | $1,110,000
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| Maturity: | Nov. 5, 2021
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| Coupon: | 6.5% per year, payable monthly if least-performing index closes at or above 62% coupon barrier on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If least-performing index’s final level is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that least-performing index’s final level is less than initial level
|
| Call: | After six months, at par plus contingent coupon if each index closes at or above initial price on any quarterly determination date
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| Initial share prices: | 1,543.275 for Russell, 3,271.03 for S&P, 11,142.76 for Nasdaq
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| Coupon barrier levels: | 956.831 for Russell, 2,028.039 for S&P, 6,908.511 for Nasdaq, 62% of initial level
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| Downside threshold levels: | 956.831 for Russell, 2,028.039 for S&P, 6,908.511 for Nasdaq, 62% of initial level
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| Pricing date: | Oct. 28
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| Settlement date: | Nov. 2
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61771EDZ8
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