Published on 2/10/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 contingent income autocallable securities on three stocks
By William Gullotti
Buffalo, N.Y., Feb. 10 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due May 1, 2024 linked to the worst performing of the common stocks of CVS Health Corp., Johnson & Johnson and Walgreens Boots Alliance, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7.25% if each underlying stock closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any semiannual review date.
The payout at maturity will be par plus the coupon unless any underlying stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
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: | CVS Health Corp., Johnson & Johnson, Walgreens Boots Alliance, Inc.
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Amount: | $500,000
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Maturity: | May 1, 2024
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Coupon: | 7.25% annualized, payable monthly if each stock closes at or above coupon barrier on review date for that period
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Price: | Par
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Payout at maturity: | If each stock finishes at or above downside threshold, par plus coupon; otherwise, 1% loss for each 1% decline of worst performing stock
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Call: | At par plus coupon if each stock closes at or above its initial level on any semiannual call date
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Initial levels: | $74.02 for CVS, $159.48 for J&J, $54.60 for Walgreens
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Coupon barrier levels: | $44.412 for CVS, $95.688 for J&J, $32.76 for Walgreens; 60% of initial levels
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Downside thresholds: | $44.412 for CVS, $95.688 for J&J, $32.76 for Walgreens; 60% of initial levels
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Pricing date: | April 19, 2021
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Settlement date: | April 22, 2021
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.6%
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Cusip: | 61771VUU2
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