Published on 10/15/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.94 million callable contingent income securities on S&P, ETFs
By William Gullotti
Buffalo, N.Y., Oct. 15 – Morgan Stanley Finance LLC sold $2.94 million of callable contingent income securities due July 27, 2023 tied to the worst performing of the SPDR S&P Retail ETF, the Energy Select Sector SPDR Fund and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Quarterly, the notes will pay a contingent coupon at the rate of 14.5% per year if each underlier closes at or above its coupon threshold level, 75% of its initial level, on the related determination date.
The notes will be callable at par on any quarterly observation date.
The payout at maturity will be par plus the coupon unless any underlier finishes below its 75% downside threshold, in which case investors will be fully exposed to the worst performer’s decline 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
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| Issue: | Callable contingent income securities
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| Underlying assets: | SPDR S&P Retail ETF, Energy Select Sector SPDR Fund, S&P 500 index
|
| Amount: | $2,941,000
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| Maturity: | July 27, 2023
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| Coupon: | 14.5% per year, payable quarterly if each underlier closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
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| Payout at maturity: | Par plus coupon unless any underlier finishes below its downside threshold, in which case investors will be fully exposed to worst performer’s decline from its initial level
|
| Call option: | At par on any quarterly observation date
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| Initial levels: | $96.11 for Retail ETF, 4,411.79 for S&P, $48.52 for Energy ETF
|
| Coupon threshold levels: | $72.083 for Retail ETF, 3,308.843 for S&P, $36.39 for Energy ETF; 75% of initial levels
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| Downside threshold levels: | $72.083 for Retail ETF, 3,308.843 for S&P, $36.39 for Energy ETF; 75% of initial levels
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| Pricing date: | July 23
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| Settlement date: | July 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
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| Cusip: | 61773FJE4
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