Published on 10/18/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.03 million autocallable jump securities on three indexes
By Sarah Lizee
Olympia, Wash., Oct. 18 – Morgan Stanley Finance LLC priced $1.03 million of 0% jump securities with autocallable feature due Oct. 15, 2026 linked to the worst performing of the S&P 500 index, Dow Jones industrial average and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 10% if each index closes at or above the applicable call level on any annual review date starting Oct. 14, 2020. The call level for each index will be 100% of its initial level for the first three review dates, stepping down by 5% each year after that.
The payout at maturity will be par plus 70% if each index finishes at or above 80% of its initial level. If the worst performing index declines by more than 20% but by no more than 30%, the payout will be par. If the worst performing index finishes below its 70% downside threshold level, investors will be fully exposed to the decline of that index.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | S&P 500 index, Dow Jones industrial average and Nasdaq-100 index
|
| Amount: | $1,028,000
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| Maturity: | Oct. 15, 2026
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| Coupon: | 0%
|
| Price: | Par
|
| Call: | At par plus an annual premium of 10% if each index closes at or above the applicable call level on any annual review date starting Oct. 14, 2020; call level for each index will be 100% of its initial level for the first three review dates, stepping down by 5% each year after that
|
| Payout at maturity: | Par plus 70% if each index finishes at or above 80% of its initial level; if the worst performing index declines by more than 20% but by no more than 30%, par; if the worst performing index finishes below its 70% downside threshold level, full exposure to the decline of that index
|
| Initial levels: | 2,970.27 for S&P, 26,816.59 for Dow, 7,843.875 for Nasdaq
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| Downside thresholds: | 2,079.189 for S&P, 18,771.613 for Dow, 5,490.713 for Nasdaq; 70% of initial levels
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| Pricing date: | Oct. 11
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| Settlement date: | Oct. 17
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61769HZM0
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