Published on 9/28/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $7.16 million callable contingent income securities on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 28 – Morgan Stanley Finance LLC sold $7.16 million of callable contingent income securities due March 27, 2024 tied to the worst performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 8.4% per year if each index closes at or above its coupon threshold level, 65% of its initial level, on each business day that quarter.
The notes will be callable at par plus any coupon due on any quarterly observation date.
If the notes are not called and each index finishes at or above its 65% downside threshold, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% decline of the worst performer 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: | Callable contingent income securities
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Dow Jones industrial average
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| Amount: | $7,163,000
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| Maturity: | March 27, 2024
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| Coupon: | 8.4% per year, payable quarterly if each index closes at or above its coupon threshold level on each day that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon if each index finishes at or above downside threshold; otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level
|
| Call option: | At par plus any coupon due on any quarterly observation date
|
| Initial levels: | 4,395.64 for S&P, 2,218.561 for Russell, 34,258.32 for Dow
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| Coupon threshold levels: | 2,857.166 for S&P, 1,442.065 for Russell, 22,267.908 for Dow; 65% of initial levels
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| Downside threshold levels: | 2,857.166 for S&P, 1,442.065 for Russell, 22,267.908 for Dow; 65% of initial levels
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| Pricing date: | Sept. 22
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| Settlement date: | Sept. 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0%
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| Cusip: | 61773FZF3
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