Published on 8/11/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $935,000 contingent income autocalls on stocks
By Taylor Fox
New York, Aug. 11 – Morgan Stanley Finance LLC priced $935,000 of contingent income autocallable securities due Feb. 8, 2023 tied to the worst performing of the stocks of Southwest Airlines Co., Norwegian Cruise Line Holdings Ltd., Pinterest, Inc. and Solaredge Technologies, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 33% per year if each stock closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period. Previously unpaid coupons will also be paid.
The notes will be automatically called at par if each stock closes at or above 90% of 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 any 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
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Southwest Airlines Co., Norwegian Cruise Line Holdings Ltd., Pinterest, Inc. and Solaredge Technologies, Inc.
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| Amount: | $935,000
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| Maturity: | Feb. 8, 2023
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| Coupon: | 33% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date
|
| Price: | Par
|
| 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
|
| Call option: | At par if each stock closes at or above 90% of its initial level on any monthly call determination date after six months
|
| Initial levels: | $46.55 for Southwest, $23.61 for Norwegian, $77.14 for Pinterest and $307.08 for Solaredge
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| Call threshold levels: | $41.895 for Southwest, $21,249 for Norwegian, $69.426 for Pinterest and $276.372 for Solaredge, 90% of initial levels
|
| Coupon barrier levels: | $27.93 for Southwest, $14.166 for Norwegian, $46.284 for Pinterest and $184.248 for Solaredge; 60% of initial levels
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| Downside threshold levels: | $23.275 for Southwest, $11.805 for Norwegian, $38.57 for Pinterest and $153.54 for Solaredge; 50% of initial levels
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| Pricing date: | Feb. 3
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| Settlement date: | Feb. 8
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61771ER42
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