Published on 7/2/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.04 million contingent income autocalls on three stocks
By Kiku Steinfeld
Chicago, July 2 – Morgan Stanley Finance LLC priced $1.04 million of contingent income autocallable securities due June 19, 2025 linked to the worst performing of the common stocks of Intel Corp., Boeing Co. and Visa Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annual rate of 20.1% if each stock closes at or above its coupon barrier, 50% of its initial level, on the determination date for that period.
After six months, the notes will be called at par plus the contingent coupon if each stock closes above its initial level on any monthly redemption date.
The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Intel Corp., Boeing Co. and Visa Inc.
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| Amount: | $1,035,000
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| Maturity: | June 19, 2025
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| Coupon: | 20.1% per year, payable each month that each stock closes at or above coupon barrier on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
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| Call: | After six months, the notes will be called at par plus the contingent coupon if each stock closes above its initial level on any monthly redemption date
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| Initial share prices: | $197.77 for Boeing, $60.40 for Intel, $192.88 for Visa
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| Coupon barriers: | $98.885 for Boeing, $30.20 for Intel, $96.44 for Visa; 50% of initial share prices
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| Downside thresholds: | $118.662 for Boeing, $36.24 for Intel, $115.728 for Visa; 60% of initial share prices
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| Pricing date: | June 16
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| Settlement date: | June 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61771BNF7
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