Published on 1/31/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocallables on stocks
By Sarah Lizee
Olympia, Wash., Jan. 31 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Jan. 30, 2025 linked to the worst performing of the common stocks of American Airlines Group Inc., Trade Desk, Inc. and Plains All American Pipeline, LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annual rate of 20% if each stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
Beginning April 30, the notes will be called at par plus the contingent coupon if each stock closes above 90% of its initial level on any monthly redemption date.
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.
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: | American Airlines Group Inc., Trade Desk, Inc. and Plains All American Pipeline, LP
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Amount: | $1 million
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Maturity: | Jan. 30, 2025
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Coupon: | 20% per year, payable each month 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: | Beginning April 30, the notes will be called at par plus the contingent coupon if each stock closes above 90% of its initial level on any monthly redemption date
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Initial share prices: | $26.11 for American Airlines, $273.23 for Trade Desk, $17.42 for Plains
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Coupon barriers: | $15.666 for American Airlines, $163.938 for Trade Desk, $10.452 for Plains; 60% of initial share prices
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Downside thresholds: | $13.055 for American Airlines, $136.615 for Trade Desk, $8.71 for Plains; 50% of initial share prices
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Pricing date: | Jan. 27
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Settlement date: | Jan. 30
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.25%
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Cusip: | 61770FEE2
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