Published on 3/28/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.65 million callable contingent income securities on indexes
By William Gullotti
Buffalo, N.Y., March 28 – Morgan Stanley Finance LLC sold $2.65 million of callable contingent income securities due April 30, 2026 tied to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Quarterly, the notes will pay a contingent coupon at the rate of 5.25% per year if each index 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 plus coupon on any quarterly observation date after one year.
The payout at maturity will be par plus any coupon due unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.
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: | Callable contingent income securities
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Underlying indexes: | Nasdaq-100 index, Russell 2000 index, Dow Jones industrial average
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Amount: | $2,647,000
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Maturity: | April 30, 2026
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Coupon: | 5.25% per year, payable quarterly if each index closes at or above its coupon threshold level on the related determination date
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Price: | Par
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Call option: | At par plus coupon on any quarterly observation date after one year
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Payout at maturity: | Par plus any coupon due unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
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Initial levels: | 13,960.28 for Nasdaq, 2,301.267 for Russell, 33,984.93 for Dow
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Coupon threshold levels: | 10,470.21 for Nasdaq, 1,725.95 for Russell, 25,488.698 for Dow; 75% of initial levels
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Downside threshold levels: | 8,376.168 for Nasdaq, 1,380.76 for Russell, 20,390.958 for Dow; 60% of initial levels
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Pricing date: | April 27, 2021
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Settlement date: | April 30, 2021
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 4.25%
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Cusip: | 61771VRF9
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