Published on 5/20/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.85 million contingent income autocalls on index, ETF
By Wendy Van Sickle
Columbus, Ohio, May 20 – Morgan Stanley Finance LLC priced $3.85 million of contingent income autocallable securities due May 1, 2026 linked to the worst performing of the S&P 500 index and the ARK Innovation ETF, according to a 424B2 filing with the Securities and Exchange Commission.
If each underlier closes at or above its coupon threshold level, 60% of its initial level, on a quarterly determination date, the notes will pay a contingent payment that period at an annualized rate of 7.25%.
The notes will be called at par plus the contingent coupon if each underlier closes at or above its initial level on any quarterly determination date after one year.
If each underlier finishes at or above its 60% downside threshold level, the payout at maturity will be par plus any final contingent coupon. Otherwise, investors will have full exposure to the performance of the least-performing underlier.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underliers: | S&P 500 index and ARK Innovation ETF
|
| Amount: | $3,853,000
|
| Maturity: | May 1, 2026
|
| Coupon: | 7.25% per year, payable quarterly if each underlier closes at or above coupon threshold level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each underlier finishes at or above its downside threshold level, par plus the final contingent coupon if due; otherwise, investors will have full exposure to the performance of the least-performing underlier
|
| Call: | At par plus contingent coupon if each underlier closes at or above initial level on any quarterly determination date after one year
|
| Initial levels: | 4,183.18 for S&P, $125.38 for ARK Innovation
|
| Coupon threshold levels: | 2,509.908 for S&P, $75.228 for ARK Innovation, 60% of initial levels
|
| Downside threshold levels: | 2,509.908 for S&P, $75.228 for ARK Innovation, 60% of initial levels
|
| Pricing date: | April 28
|
| Settlement date: | May 3
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 4%
|
| Cusip: | 61771VWE6
|
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