Published on 1/15/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $600,000 contingent income autocalls on Nasdaq, S&P
By Wendy Van Sickle
Columbus, Ohio, Jan. 15 – Morgan Stanley Finance LLC priced $600,000 of contingent income autocallable securities due July 15, 2022 tied to the Nasdaq-100 index and the S&P 500 index according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a semiannual contingent coupon at the rate of 6.78% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period, plus any previously unpaid coupon.
The notes will be automatically called at par if each index closes at or above its initial level on any semiannual determination date.
If the lowest-performing index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus any final coupon. If the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
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: | Contingent income autocallable securities
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| Underlying indexes: | Nasdaq-100 index, S&P 500 index
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| Amount: | $600,000
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| Maturity: | July 15, 2022
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| Coupon: | 6.78% per year, payable semiannually if each index closes at or above coupon barrier level on observation date that period, plus any previously unpaid coupon
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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| Call option: | At par if each index closes at or above its initial level on any semiannual determination date
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| Initial levels: | 12,838.86 for Nasdaq, 3,801.19 for S&P
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| Coupon barriers: | 9,024.463 for Nasdaq, 2,660.833 for S&P; 70% of initial levels
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| Downside threshold levels: | 9,024.463 for Nasdaq, 2,660.833 for S&P; 70% of initial levels
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| Pricing date: | Jan. 13
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| Settlement date: | Jan. 15
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61771EH84
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