Published on 8/25/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $533,000 callable contingent income notes on indexes
By Taylor Fox
New York, Aug. 25 – Morgan Stanley Finance LLC priced $533,000 of callable contingent income securities due Feb. 14, 2022 tied to the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 11.5% 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 no index closes below its 60% downside threshold during the life of the notes, investors will receive par at maturity.
If any index closes below its 60% downside threshold at any point during the life of the notes, investors will be exposed to the losses of the worst performing index with a maximum payout of par.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying indexes: | S&P 500 index, Russell 2000 index and Nasdaq-100 index
|
| Amount: | $553,000
|
| Maturity: | Feb. 14, 2022
|
| Coupon: | 11.5% per year, payable monthly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | Par if no index closes below downside threshold during life of notes; exposure to losses of worst performer if any index closes below downside threshold during life of notes with a maximum payout of par
|
| Call option: | At par on any quarterly redemption date after six months
|
| Initial levels: | 3,911.23 for S&P, 2,298.998 for Russell and 13,687.08 for Nasdaq
|
| Coupon barrier levels: | 2,737.861 for S&P, 1,609.299 for Russell and 9,580.956 for Nasdaq; 70% of initial levels
|
| Downside threshold levels: | 2,346.738 for S&P, 1,379.399 for Russell and 8,212.248 for Nasdaq; 60% of initial levels
|
| Pricing date: | Feb. 9
|
| Settlement date: | Feb. 11
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.6%
|
| Cusip: | 61771E3T3
|
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