Published on 1/14/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million autocallable contingent income notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 14 – Morgan Stanley Finance LLC priced $1 million of autocallable contingent income securities due July 8, 2022 tied to the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 9.5% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be called at par monthly if each index closes above its initial level on a quarterly call observation date.
If the lowest-performing index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
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: | Autocallable contingent income securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $1 million
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| Maturity: | July 8, 2022
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| Coupon: | 9.5% per year, payable monthly if each index closes at or above coupon barrier level on observation date that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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| Call: | Automatically at par if each index closes above initial level on any quarterly redemption date
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| Initial levels: | 12,694.66 for Nasdaq, 1,945.914 for Russell, 30,223.89 for Dow
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| Coupon barriers: | 8,886.262 for Nasdaq, 1,362.14 for Russell, 21,156.723 for Dow; 70% of initial levels
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| Downside threshold levels: | 8,886.262 for Nasdaq, 1,362.14 for Russell, 21,156.723 for Dow; 70% of initial levels
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| Pricing date: | Jan. 4
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| Settlement date: | Jan. 7
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61771EYG7
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