Published on 8/18/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $4.95 million contingent income autocalls on three stocks
By William Gullotti
Buffalo, N.Y., Aug. 18 – Morgan Stanley Finance LLC priced $4.95 million of contingent income autocallable securities due May 16, 2024 linked to the common stocks of PayPal Holdings, Inc., Square, Inc. and the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 14% 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 coupon if each stock closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus any coupon due unless either underlying stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | PayPal Holdings, Inc., Square, Inc., Alibaba Group Holding Ltd.
|
| Amount: | $4,950,000
|
| Maturity: | May 16, 2024
|
| Coupon: | 14% annualized, payable quarterly if each stock closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
|
| 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
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date
|
| Initial levels: | $239.91 for PayPal, $206.67 for Square, $219.90 for Alibaba
|
| Coupon barrier levels: | $143.946 for PayPal, $124.002 for Square, $131.94 for Alibaba; 60% of initial levels
|
| Downside thresholds: | $143.946 for PayPal, $124.002 for Square, $131.94 for Alibaba; 60% of initial levels
|
| Pricing date: | May 12
|
| Settlement date: | May 17
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.25%
|
| Cusip: | 61771VP53
|
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