Published on 1/24/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.1 million callable contingent income notes on three ETFs
By Kiku Steinfeld
Chicago, Jan. 25 – Morgan Stanley Finance LLC priced $1.1 million of callable contingent income securities due Jan. 20, 2023 linked to the SPDR Dow Jones Industrial Average ETF trust, the iShares Russell 2000 ETF and the SPDR S&P 500 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.
Each month the notes will pay a contingent coupon at the rate of 7.15% per year if each ETF closes at or above its coupon barrier level, 63.5% of its initial level, on the observation date that period.
If the lowest-performing ETF finishes at or above its knock-in level, 63.5% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the lowest-performing ETF from its initial level.
The notes will be callable at par on any quarterly redemption date.
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 ETFs: | SPDR Dow Jones Industrial Average ETF trust, iShares Russell 2000 ETF and the SPDR S&P 500 ETF trust
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Amount: | $1,100,000
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Maturity: | Jan. 20, 2023
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Coupon: | 7.15% per year, payable monthly if each ETF closes at or above coupon barrier level on observation date that period
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Price: | Par
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Payout at maturity: | If each ETF finishes at or above knock-in level, par; otherwise, full exposure to decline of lowest-performing ETF from its initial level
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Call option: | At par on any quarterly redemption date
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Initial levels: | $378.46 for S&P, $213.94 for Russell, $310.05 for Dow$196.882
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Coupon barriers: | $240.322 for S&P, $135.852 for Russell, $196.882 for Dow; 63.5% of initial levels
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Knock-in levels: | $240.322 for S&P, $135.852 for Russell, $196.882 for Dow; 63.5% of initial levels
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Pricing date: | Jan. 14
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Settlement date: | Jan. 22
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.5%
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Cusip: | 61771EH76
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