Published on 1/24/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.02 million jump securities with autocallable feature on indexes
By Taylor Fox
New York, Jan. 25 – Morgan Stanley Finance LLC priced $1.02 million of 0% jump securities with autocallable feature due Dec. 29, 2023 linked to the worst performing of the Russell 2000 index and the Nasdaq-100 index, 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 12% if each index closes at or above 95% of its initial level on any semiannual observation date.
At maturity, if the notes have not been called and all indexes finish above 95% of their initial levels, the payout will be par plus 36%.
If the final level of either index is less than 95% of its initial level but the final level of each index is greater than or equal to its 70% downside threshold level, the payout will be par. If the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Jump securities with autocallable feature
|
| Underlying indexes: | Russell 2000 index and Nasdaq-100 index
|
| Amount: | $1,022,000
|
| Maturity: | Dec. 29, 2023
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | At par plus an annual premium of 12% if each index closes at or above 95% of its initial level on any semiannual observation date
|
| Payout at maturity: | Par plus 36% if both indexes finish above 95% of initial level; if final level of either index is less than 95% of initial level but final level of each index is greater than or equal to downside threshold level, par; if worst performing index finishes below downside threshold level, full exposure to decline
|
| Initial levels: | 12,653.104 for Nasdaq, 2,007.104 for Russell
|
| Downside threshold levels: | 8,857.198 for Nasdaq, 1,404.973 for Russell; 70% of initial levels
|
| Call thresholds: | 12,020.483 for Nasdaq, 1,906.749 for Russell, 95% of initial levels
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| Pricing date: | Dec. 23
|
| Settlement date: | Dec. 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.75%
|
| Cusip: | 61771EQB7
|
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