Published on 1/10/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.2 million of 7.76% autocallable RevCons linked to stocks
By Sarah Lizee
Olympia, Wash., Jan. 10 – Morgan Stanley Finance LLC priced $1.2 million of 7.76% worst-of fixed-coupon autocallable RevCons due July 15, 2021 linked to the least performing of the common stocks of Chevron Corp., Walt Disney Co. and Newmont Mining Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
After six months, the notes will be automatically called at par if each stock closes at or above its then-applicable redemption threshold level on any quarterly determination date. For each stock, its redemption threshold level is 95% of its initial share price on July 8, 2020, 90% of its initial share price on Oct. 8, 2020, 85% of its initial share price on Jan. 8, 2021 and 80% of its initial share prices on April 8, 2021.
The payout at maturity will be par unless any stock finishes below its downside threshold level, 70% of its initial share price, in which case investors will lose 1% for every 1% that the least-performing stock declines from its initial share price.
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: | Worst-of fixed-coupon autocallable RevCons
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| Underlying stocks: | Chevron Corp., Walt Disney Co. and Newmont Mining Corp.
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| Amount: | $1.2 million
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| Maturity: | July 15, 2021
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| Coupon: | 7.76%, payable quarterly
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below downside threshold level, in which case 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | After six months, automatically at par if each stock closes at or above then-applicable redemption threshold level on any quarterly determination date
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| Initial share prices: | $117.70 for Chevron, $145.40 for Disney, $42.08 for Newmont
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| Redemption thresholds: | 95% of its initial share price on July 8, 2020, 90% of its initial share price on Oct. 8, 2020, 85% of its initial share price on Jan. 8, 2021 and 80% of its initial share prices on April 8, 2021
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| Downside thresholds: | $82.39 for Chevron, $101.78 for Disney, $29.456 for Newmont, or 70% of initial share prices
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| Pricing date: | Jan. 8
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| Settlement date: | Jan. 15
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61770FCK0
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