Published on 4/4/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.59 million contingent income autocallable securities on stocks
By William Gullotti
Buffalo, N.Y., April 4 – Morgan Stanley Finance LLC priced $2.59 million of contingent income autocallable securities due May 8, 2026 linked to the worst performing of the shares of Amazon.com, Inc., PayPal Holdings, Inc. and Tesla, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 19.5% if each underlying stock closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above its initial level, on any quarterly review date after six months.
The payout at maturity will be par plus any coupon due unless any underlying stock finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
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: | Contingent income autocallable securities
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Underlying stocks: | Amazon.com, Inc., PayPal Holdings, Inc., Tesla, Inc.
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Amount: | $2,587,000
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Maturity: | May 8, 2026
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Coupon: | 19.5% annualized, payable quarterly if each stock closes at or above coupon barrier on review date for that quarter
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Price: | Par
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Payout at maturity: | If each stock finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing stock from initial level
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Call: | At par plus coupon if each stock closes at or above its initial level, on any quarterly call date after six months
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Initial levels: | $3,270.54 for Amazon, $247.40 for PayPal, $670.94 for Tesla
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Coupon barrier levels: | $1,962.324 for Amazon, $148.44 for PayPal, $402.564 for Tesla; 60% of initial levels
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Downside thresholds: | $1,635.27 for Amazon, $123.70 for PayPal, $335.47 for Tesla; 50% of initial levels
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Pricing date: | May 5, 2021
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Settlement date: | May 10, 2021
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 4%
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Cusip: | 61771VZP8
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