Published on 4/13/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocalls on three stocks
By Sarah Lizee
Olympia, Wash., April 13 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Oct. 5, 2022 linked to the worst performing of the common stocks of Amazon.com, Inc., Walmart Inc. and Costco Wholesale Corp., 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 an annual rate of 14% if each stock closes at or above its coupon barrier, 70% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above 95% of its initial level on any quarterly redemption date.
The payout at maturity will be par unless any stock finishes below its 70% 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. Morgan Stanley Wealth Management is the dealer.
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., Walmart Inc. and Costco Wholesale Corp.
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Amount: | $1 million
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Maturity: | Oct. 5, 2022
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Coupon: | 14% per year, payable each quarter that each stock closes at or above coupon barrier on determination date for that period
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Price: | Par
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Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
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Call: | Par plus the contingent coupon if each stock closes above 95% of its initial level on any quarterly redemption date
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Initial share prices: | $1,949.72 for Amazon, $113.62 for Walmart, $285.13 for Costco
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Coupon barriers: | $1,364.804 for Amazon, $79.534 for Walmart, $199.591 for Costco; 70% of initial share prices
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Downside thresholds: | $1,364.804 for Amazon, $79.534 for Walmart, $199.591 for Costco; 70% of initial share prices
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Pricing date: | March 31
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Settlement date: | April 3
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Agent: | Morgan Stanley & Co. LLC
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Dealer: | Morgan Stanley Wealth Management
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Fees: | 3.25%
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Cusip: | 61770FXW1
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