Published on 12/23/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.7 million contingent income autocallables linked to stocks
By Angela McDaniels
Tacoma, Wash., Dec. 23 – Morgan Stanley Finance LLC priced $2.7 million of contingent income autocallable securities due Dec. 22, 2022 linked to the worst performing of the common stocks of Amazon.com, Inc., Apple Inc. and salesforce.com, inc., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above its downside threshold level, 80% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 19.25%.
Beginning June 19, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date.
If each stock’s final share price is greater than or equal to its downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the least-performing stock’s final share price is less than its initial share price.
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. (Symbol: AMZN), Apple Inc. (Symbol: AAPL) and salesforce.com, inc. (Symbol: CRM)
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Amount: | $2.7 million
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Maturity: | Dec. 22, 2022
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Coupon: | 19.25% per year, payable quarterly if each stock closes at or above downside threshold level on determination date for that quarter
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Price: | Par
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Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock’s final share price is less than initial share price
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Call: | Beginning June 19, 2020, at par plus contingent coupon if each stock closes at or above initial share price on any quarterly determination date other than final determination date
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Initial share prices: | $1,792.28 for Amazon, $280.02 for Apple and $163.33 for salesforce.com
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Downside thresholds: | $1,433.824 for Amazon, $224.016 for Apple and $130.664 for salesforce.com, or 80% of initial share prices
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Pricing date: | Dec. 19
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Settlement date: | Dec. 24
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2%
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Cusip: | 61769H4R3
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