Published on 3/27/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 contingent income autocalls on Russell, S&P ETFs
Chicago, March 29 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Feb. 25, 2022 linked to the SPDR S&P 500 ETF trust and the iShares Russell 2000 ETF, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.25% if each underlying fund closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par if each fund closes at or above its initial level on any review date.
The payout at maturity will be par plus any coupon due unless either underlying fund finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses of the worst performing fund.
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
|
| Underlying funds: | SPDR S&P 500 ETF trust and the iShares Russell 2000 ETF
|
| Amount: | $500,000
|
| Maturity: | Feb. 25, 2022
|
| Coupon: | 9.25% annualized, payable quarterly if each fund closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each fund finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing fund
|
| Call: | At par if each fund closes at or above its initial level on any quarterly call date
|
| Initial levels: | $390.72 for S&P, $220.59 for Russell
|
| Coupon barrier levels: | $293.04 for S&P, $165.443 for Russell, 75% of initial levels
|
| Downside thresholds: | $253.968 for S&P, $143.384 for Russell, 65% of initial levels
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 25
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.25%
|
| Cusip: | 61771VAY6
|
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