Published on 5/22/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.43 million contingent income autocallables linked to indexes
By Wendy Van Sickle
Columbus, Ohio, May 22 – Morgan Stanley Finance LLC priced $3.43 million of contingent income autocallable securities due May 20, 2024 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 are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 6% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the determination date for that quarter.
After one year, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par plus any coupon due unless any index finishes below its 60% downside threshold level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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 indexes: | Russell 2000, Nasdaq-100 index and Dow Jones industrial average
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| Amount: | $3,433,000
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| Maturity: | May 20, 2024
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| Coupon: | 6% per year, payable quarterly if each index closes at or above 70% coupon threshold level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless any index finishes below its 60% downside threshold level, in which case 1% loss for every 1% that least-performing index declines from initial level
|
| Call: | After one year, automatically at par if each index closes at or above initial level on any quarterly determination date
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| Initial levels: | 1,548.271 for Russell 2000, 7,503.246 for Nasdaq and 25,648.02 for Dow
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| Coupon threshold levels: | 1,083.79 for Russell 2000, 5,252.272 for Nasdaq and 17,953.614 for Dow, or 70% of initial levels
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| Downside threshold levels: | 928.963 for Russell 2000, 4,501.948 for Nasdaq and 15,388.812 for Dow, or 60% of initial levels
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| Pricing date: | May 15
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| Settlement date: | May 20
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.95%
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| Cusip: | 61769HBE4
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