Published on 5/2/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $631,000 contingent income autocallables on airline stocks
By Sarah Lizee
Olympia, Wash., May 2 – Morgan Stanley Finance LLC priced $631,000 of contingent income autocallable securities due May 5, 2022 linked to the lesser performing of the common stocks of American Airlines Group Inc., United Continental Holdings Inc. and Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 70% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 13.5%.
The notes will be called at par plus the contingent coupon if each stock closes at or above its call threshold, 95% of its initial share price, on any quarterly determination date.
If each stock’s final share price is greater than or equal to its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | American Airlines Group Inc., United Continental Holdings Inc. and Delta Air Lines, Inc.
|
| Amount: | $631,000
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| Maturity: | May 5, 2022
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| Coupon: | 13.5% per year, payable quarterly if each stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
|
| Call: | At par plus the contingent coupon if each stock closes at or above its call threshold on any quarterly determination date
|
| Initial share prices: | $34.18 for American, $88.86 for United, $58.29 for Delta
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| Call thresholds: | $32.471 for American, $84.417 for United, $55.376 for Delta; 95% of initial levels
|
| Downside thresholds: | $23.926 for American, $62.202 for United, $40.803 for Delta; 70% of initial levels
|
| Pricing date: | April 30
|
| Settlement date: | May 3
|
| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.125%
|
| Cusip: | 61768D7G4
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