Published on 12/5/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.87 million jump securities with autocallable feature on indexes
By Taylor Fox
New York, Dec. 7 – Morgan Stanley Finance LLC priced $1.87 million of 0% jump securities with autocallable feature due Nov. 28, 2025 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 13.65% if each index closes at or above 105% of its initial level on an annual observation date.
At maturity, if the notes have not been called and each index finishes above its 105% call threshold level, the payout will be par plus 68.25%.
If the worst performing index finishes below 105% of its initial or declines by up to 30%, the payout will be par. If the worst performing index finishes below its 70% downside threshold level, investors will be fully exposed to the decline of that index.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Jump securities with autocallable feature
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Underlying indexes: | Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
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Amount: | $1,867,000
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Maturity: | Nov. 28, 2025
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Coupon: | 0%
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Price: | Par
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Call: | At par plus an annual premium of 13.65% if each index closes at or above 105% of its initial level on an annual observation date
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Payout at maturity: | Par plus 68.25% if all indexes finish above 105% of their initial levels; if worst performing index finishes below 105% of initial level or declines by up to 30%, par; if worst performing index finishes below its downside threshold level, investors will be fully exposed to that index’s decline
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Initial levels: | 29,872.47 for Dow, 12,152.21 for Nasdaq, 1,845.024 for Russell
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Call threshold levels: | 31,366.094 for Dow, 12,759.821 for Nasdaq, 1,937.275 for Russell; 105% of initial levels
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Downside thresholds: | 20,910.729 for Dow, 8,506.547 for Nasdaq, 1,291.517 for Russell; 70% of initial levels
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Pricing date: | Nov. 25
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Settlement date: | Nov. 30
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.75%
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Cusip: | 61771EMF2
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