Published on 10/27/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.41 million contingent income autocalls on four stocks
By Kiku Steinfeld
Chicago, Oct. 27 – Morgan Stanley Finance LLC priced $3.41 million of contingent income autocallable securities due Oct. 18, 2024 tied to the worst performing of the stocks of Lennar Corp., Deere & Co., Caterpillar Inc. and Freeport-McMoRan Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 8.75% per year if each stock closes at or above its coupon barrier level, 50% of its initial level, on the observation date that period.
The notes will be automatically called at par if each stock closes at or above its initial level on any monthly call determination date after six months.
If the lowest-performing stock finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing stock finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing stock 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: | Contingent income autocallable securities
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Underlying stocks: | Lennar Corp., Deere & Co., Caterpillar Inc. and Freeport-McMoRan Inc.
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Amount: | $3,410,000
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Maturity: | Oct. 18, 2024
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Coupon: | 8.75% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date
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Price: | Par
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Payout at maturity: | If each stock finishes at or above downside threshold level, par; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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Call: | At par if each stock closes at or above its initial level on any monthly call determination date after six months
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Initial levels: | $97.12 for Lennar, $332.76 for Deere, $199.02 for Caterpillar and $38.64 for Freeport
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Coupon barriers: | $48.56 for Lennar, $166.38 for Deere, $99.51 for Caterpillar and $19.32 for Freeport; 50% of initial levels
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Downside threshold levels: | $48.56 for Lennar, $166.38 for Deere, $99.51 for Caterpillar and $19.32 for Freeport; 50% of initial levels
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Pricing date: | Oct. 15
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Settlement date: | Oct. 20
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.75%
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Cusip: | 61773F3Z4
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