Published on 3/12/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.19 million contingent income autocalls on four stocks
By Kiku Steinfeld
Chicago, March 12 – Morgan Stanley Finance LLC priced $1.19 million of contingent income autocallable securities due Aug. 30, 2023 tied to the stocks of Amazon.com, Inc., Tesla, Inc., Netflix, Inc. and Zoom Video Communications, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 30.75% per year if each stock closes at or above its coupon barrier level, 50% of its initial level, on the observation date that period.
The notes will be automatically called at par if each stock closes at or above 90% of its initial level on any quarterly call determination date after three months.
If the lowest-performing stock finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing stock finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing stock from its initial level.
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: | Amazon.com, Inc., Tesla, Inc., Netflix, Inc. and Zoom Video Communications, Inc.
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Amount: | $1,187,000
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Maturity: | Aug. 30, 2023
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Coupon: | 30.75% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date
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Price: | Par
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Payout at maturity: | If each stock finishes at or above downside threshold level, par; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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Call option: | At par if each stock closes at or above 90% of its initial level on any quarterly call determination date after three months
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Initial levels: | $3,057.16 for Amazon, $682.22 for Tesla, $546.70 for Netflix and $364.73 for Zoom
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Coupon barriers: | $1,528.58 for Amazon, $341.11 for Tesla, $273.35 for Netflix and $182.365 for Zoom; 50% of initial levels
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Downside threshold levels: | 1,528.58 for Amazon, $341.11 for Tesla, $273.35 for Netflix and $182.365 for Zoom; 50% of initial levels
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Call levels: | $2,751.444 for Amazon, $613.998 for Tesla, $492.03 for Netflix and $328.257 for Zoom; 50% of initial levels
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Pricing date: | Feb. 25
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Settlement date: | March 2
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.65%
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Cusip: | 61771VBF6
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