Published on 3/19/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million callable contingent income notes on indexes
By Wendy Van Sickle
Columbus, Ohio, March 19 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due March 6, 2024 tied to the worst performing of the Dow Jones industrial average, S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 8.9% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be callable at par quarterly after six months.
If the lowest-performing index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the 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.
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, S&P 500 index, Nasdaq-100 index
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Amount: | $1 million
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Maturity: | March 6, 2024
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Coupon: | 8.9% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
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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 on any quarterly redemption date after six months
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Initial levels: | 3,901.82 for S&P, 13,282.95 for Nasdaq, 1,317.85 for Dow
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Coupon barrier levels: | 2,731.274 for S&P, 9,298.065 for Nasdaq, 22,074.857 for Dow; 70% of initial levels
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Downside threshold levels: | 2,341.092 for S&P, 7,969.77 for Nasdaq, 18,921.096 for Dow; 60% of initial levels
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Pricing date: | March 1
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Settlement date: | March 8
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.25%
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Cusip: | 61771VCC2
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