Published on 11/22/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.08 contingent income autocallables on indexes
By Taylor Fox
New York, Nov. 23 – Morgan Stanley Finance LLC priced $2.08 million of contingent income autocallable securities due Nov. 18, 2025 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 quarterly coupon at an annual rate of 6% if the shares of all indexes close at or above their 70% coupon barrier levels on the observation date for that quarter.
After one year, the notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless any index finishes below its 65% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial level 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, S&P 500 index and Nasdaq-100 index
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| Amount: | $2,081,000
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| Maturity: | Nov. 18, 2025
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| Coupon: | 6% per year, payable quarterly if least-performing index closes at or above 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 any final coupon; otherwise, 1% loss for every 1% that least-performing index’s final level is less than initial level
|
| Call: | After one year, at par plus contingent coupon if each index closes at or above initial level on any quarterly determination date
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| Initial share prices: | 1,774.042 for Russell, 3,585.15 for S&P, 11,937.84 for Nasdaq
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| Coupon barrier levels: | 1,220.829 for Russell, 2,509.605 for S&P, 8,356.488for Nasdaq, 70% of initial level
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| Downside thresholds: | 1,133.627 for Russell, 2,330.348 for S&P, 7,759.596 for Nasdaq, 65% of initial level
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| Pricing date: | Nov. 13
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| Settlement date: | Nov. 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.75%
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| Cusip: | 61771EHK7
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