Published on 10/25/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.4 million contingent income autocallables on stocks
By Kiku Steinfeld
Chicago, Oct. 25 – Morgan Stanley Finance LLC priced $2.4 million of contingent income autocallable securities due April 18, 2023 linked to the worst performing of the stocks of Lam Research Corp., Spotify Technology SA and Expedia Group, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 8.1% if each stock closes at or above its downside threshold level, 50% of its initial price, on the corresponding observation date.
The notes will be called at par if each stock closes at or above its corresponding call threshold level on any monthly call date starting Feb. 8, 2022. The call threshold level will start at 95% of each stock’s initial price, decreasing to 90% in March and to 85% in May.
The payout at maturity will be par unless any 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: | Lam Research Corp., Spotify Technology SA and Expedia Group, Inc.
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| Amount: | $2,398,000
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| Maturity: | April 18, 2023
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| Coupon: | 8.1% annualized, payable monthly if each stock closes at or above downside threshold level on corresponding observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above its call threshold level on any monthly call date starting Feb. 8, 2022. The call threshold level will start at 95% of each stock’s initial price, decreasing to 90% on the second call date and to 85% on the fourth call date
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| Initial prices: | $169.98 for Expedia, $550.16 for Lam, $232.88 for Spotify
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| Downside threshold levels: | $84.99 for Expedia, $275.08 for Lam, $116.44 for Spotify; 50% of initial prices
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| Pricing date: | Oct. 11
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| Settlement date: | Oct. 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61773F5A7
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