Published on 1/13/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 callable contingent income notes on Dow, S&P
By Wendy Van Sickle
Columbus, Ohio, Jan. 13 – Morgan Stanley Finance LLC priced $3.31 million of callable contingent income securities due Jan. 3, 2023 linked to the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 4.25% per year if each index closes at or above its coupon barrier level, 70% of its initial level, each day of that month.
If the lowest-performing index finishes at or above its knock-in level, 60% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
The notes will be callable at par on any quarterly redemption date.
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: | Callable contingent income securities
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| Underlying indexes: | Dow Jones industrial average and S&P 500 index
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| Amount: | $250,000
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| Maturity: | Jan. 3, 2023
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| Coupon: | 4.25% per year, payable monthly if each index closes at or above coupon barrier level each day of that month
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above knock-in level, par; otherwise, full exposure to decline of lowest-performing index from its initial level
|
| Call option: | At par on any quarterly redemption date
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| Initial levels: | 3,735.36 for S&P, 30,403.97 for Dow
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| Coupon barriers: | 2,614.752 for S&P, 21,282.779 for Dow, 70% of initial levels
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| Knock-in levels: | 2,241.216 for S&P, 18,242.382 for Dow, 60% of initial levels
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| Pricing date: | Dec. 28
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| Settlement date: | Dec. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.65%
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| Cusip: | 61771EUV8
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