Published on 12/18/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $525,000 contingent income autocalls on three indexes
By Kiku Steinfeld
Chicago, Dec. 20 – Morgan Stanley Finance LLC priced $525,000 of contingent income autocallable yield notes due Aug. 30, 2023 tied to the least performing of the S&P 500 index, Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 6.25% 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 automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly call determination date after six months.
If the notes are not called and each index finishes at or above its 70% downside threshold, the payout at maturity will be par plus the final coupon.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable yield notes
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
|
| Amount: | $525,000
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| Maturity: | Aug. 30, 2023
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| Coupon: | 6.25% per year, payable quarterly if each index closes at or above coupon barrier level on any observation date
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par plus final coupon; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
|
| Call option: | At par plus coupon if each index closes at or above its initial level on any quarterly call determination date after six months
|
| Initial levels: | 4,496.19 for S&P, 15,368.92 for Nasdaq, 2,239.269 for Russell
|
| Coupon barriers: | 3,147.333 for S&P, 10,758.244 for Nasdaq, 1,567.488 for Russell; 70% of initial levels
|
| Downside thresholds: | 3,147.333 for S&P, 10,758.244 for Nasdaq, 1,567.488 for Russell; 70% of initial levels
|
| Pricing date: | Aug. 25
|
| Settlement date: | Aug. 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.9%
|
| Cusip: | 61773FSZ7
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