Published on 11/25/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4.32 million contingent income autocallables on stocks
By Taylor Fox
New York, Nov. 25 – Morgan Stanley Finance LLC priced $4.32 million of contingent income autocallable securities due Nov. 22, 2023 linked to the worst performing of the common stocks of Amazon.com, Inc., Tesla, Inc., Zoom Video Communications, Inc. and Netflix, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes pay a contingent monthly coupon at an annual rate of 23% if the shares of all stocks close at or above their 50% downside threshold levels on the observation date for that period. Previously unpaid coupons will also be paid.
The notes will be called at par plus the contingent coupon(s) if each stock closes at or above its initial price on any quarterly determination date other than the final one.
The payout at maturity will be par plus any coupons due unless any stock finishes below its 50% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price for the worst performer.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Amazon.com, Inc., Tesla, Inc., Zoom Video Communications, Inc. and Netflix, Inc.
|
| Amount: | $4,321,000
|
| Maturity: | Nov. 22, 2023
|
| Coupon: | 23% per year, payable monthly if least-performing stock closes at or above 50% coupon barrier on observation date for that period; previously unpaid coupons will also be paid
|
| Price: | Par
|
| Payout at maturity: | If least-performing stock’s final share price is greater than or equal to downside threshold level, par plus any coupons due; otherwise, 1% loss for every 1% that least-performing stock’s final share price is less than initial share price
|
| Call: | At par plus contingent coupon(s) if each stock closes at or above initial share price on any quarterly determination date other than the final one
|
| Initial share prices: | $3,135.66 for Amazon, $441.61 for Tesla, $401.63 for Zoom and $480.63 for Netflix
|
| Downside thresholds: | $1,567.83 for Amazon, $220.805 for Tesla, $200.815 for Zoom and $240.315 for Netflix, 50% of initial level
|
| Pricing date: | Nov. 17
|
| Settlement date: | Nov. 20
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.75%
|
| Cusip: | 61771EKJ6
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
