Published on 3/19/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3 million callable contingent income notes on Stoxx, S&P, Russell
By Kiku Steinfeld
Chicago, March 19 – Morgan Stanley Finance LLC sold $3 million of callable contingent income securities due March 7, 2023 tied to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7.2% per year if each index closes at or above its coupon threshold level, 60% of its initial level, on each day of that quarter.
The notes will be callable at par on any quarterly observation date.
The payout at maturity will be par plus the coupon unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management acting as a selected dealer.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Euro Stoxx 50
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| Amount: | $3,000,000
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| Maturity: | March 7, 2023
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| Coupon: | 7.2% per year, payable each quarter if each index closes at or above its coupon threshold level on each day of that quarter
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| Price: | Par
|
| Call option: | At par on any quarterly observation date
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| Payout at maturity: | Par plus coupon unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
|
| Initial levels: | 3,870.29 for S&P, 3,707.72 for Stoxx and 2,231.509 for Russell
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| Coupon threshold levels: | 2,322.174 for S&P, 2,224.632 for Stoxx and 1,338.905 for Russell, or 60% of initial levels
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| Downside threshold levels: | 2,322.174 for S&P, 2,224.632 for Stoxx and 1,338.905 for Russell, or 60% of initial levels
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| Pricing date: | March 2
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| Settlement date: | March 5
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management acting as a selected dealer.
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| Fees: | 2%
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| Cusip: | 61771VFT2
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