Published on 7/22/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million callable contingent income securities on three stocks
By Wendy Van Sickle
Columbus, Ohio, July 22 – Morgan Stanley Finance LLC sold $1 million of callable contingent income securities due June 3, 2022 tied to the worst performing of the stocks of Delta Air Lines, Inc., Royal Caribbean Cruises Ltd. and the Wynn Resorts, Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Quarterly, the notes will pay a contingent coupon at the rate of 10.5% per year if each underlier closes at or above its coupon threshold level, 65% of its initial level, on the related determination date.
The notes will be callable at par on any quarterly observation date.
The payout at maturity will be par plus the coupon unless any underlier finishes below its 65% downside threshold, in which case investors will be fully exposed to the stock’s decline from its initial level.
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 stocks: | Delta Air Lines, Inc., Royal Caribbean Cruises Ltd. and Wynn Resorts, Ltd.
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| Amount: | $1 million
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| Maturity: | June 3, 2022
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| Coupon: | 10.5% per year, payable quarterly if each underlier closes at or above its coupon threshold level on the related determination date
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| Price: | Par
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| Call option: | At par on any quarterly observation date
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| Payout at maturity: | Par plus coupon unless any underlier finishes below its downside threshold, in which case investors will be fully exposed to the stock’s decline from its initial level
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| Initial levels: | $47.49 for Delta, $132.45 for Wynn, $92.49 for Royal Caribbean
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| Coupon threshold levels: | $30.869 for Delta, $86.093 for Wynn, $60.119 for Royal Caribbean; 65% of initial levels
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| Downside threshold levels: | $30.869 for Delta, $86.093 for Wynn, $60.119 for Royal Caribbean; 65% of initial levels
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| Pricing date: | May 27
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| Settlement date: | June 2
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.2%
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| Cusip: | 61771V3Z1
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