Published on 6/25/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 contingent income autocallable securities on five stocks
By William Gullotti
Buffalo, N.Y., June 25 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Feb. 15, 2022 linked to the shares of Amazon.com, Inc., Apple Inc., Alphabet Inc., Microsoft Corp. and Qorvo, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 21% if each underlying stock closes at or above its 90% coupon barrier on the corresponding observation date, including previously unpaid coupons.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any monthly review date.
The payout at maturity will be par plus the final coupon, including any previously unpaid coupons, if all stocks finish at or above the coupon barrier.
If each stock finishes at or above its 70% downside threshold, the payout will be par.
Otherwise, investors will be fully exposed to any losses of the worst performing stock from initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Issue: | Contingent income autocallable securities
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| Guarantor: | Morgan Stanley
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| Underlying stocks: | Amazon.com, Inc., Apple Inc., Alphabet Inc., Microsoft Corp., Qorvo, Inc.
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| Amount: | $500,000
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| Maturity: | Feb. 15, 2022
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| Coupon: | 21% annualized, payable monthly if each stock closes at or above coupon barrier on the corresponding review date; any previously unpaid coupons will also be paid
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above the coupon barrier, par plus final coupon including all previously unpaid coupons; if each stock finishes at or above the downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing stock from initial level
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| Call: | At par plus coupon if each stock closes at or above its initial level on any monthly call date
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| Initial levels: | $3,270.54 for Amazon, $128.10 for Apple, $2,314.77 for Alphabet, $246.47 for Microsoft, $182.56 for Qorvo
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| Coupon barrier levels: | $2,943.486 for Amazon, $115.29 for Apple, $2,083.293 for Alphabet, $221.823 for Microsoft, $164.304 for Qorvo; 90% of initial levels
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| Downside thresholds: | $2,289.378 for Amazon, $89.67 for Apple, $1,620.339 for Alphabet, $172.529 for Microsoft, $127.792 for Qorvo; 70% of initial levels
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| Pricing date: | May 10
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| Settlement date: | May 13
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61771VL32
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