Published on 12/11/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.72 million contingent income autocalls on stocks
By Sarah Lizee
Olympia, Wash., Dec. 11 – Morgan Stanley Finance LLC priced $1.72 million of contingent income autocallable securities due Nov. 30, 2022 linked to the worst performing of the common stocks of Citigroup Inc., Dollar Tree, Inc. and Intel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 60% of its initial share price, on a monthly observation date, the notes will pay a contingent coupon that month at an annualized rate of 11.4%.
After six months, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly determination date.
If each stock’s final share price is greater than or equal to its 60% 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 lesser-performing stock declines from 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: | Citigroup Inc., Dollar Tree, Inc. and Intel Corp.
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| Amount: | $1,718,000
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| Maturity: | Nov. 30, 2022
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| Coupon: | 11.4% per year, payable monthly if each stock closes at or above coupon threshold level on observation date for that month
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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 declines from initial share price
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| Call: | After six months, at par plus contingent coupon if each stock closes at or above its initial level on any quarterly determination date
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| Initial share prices: | $75.68 for Citi, $112.39 for Dollar, $58.81 for Intel
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| Coupon barrier levels: | $45.408 for Citi, $67.434 for Dollar, $35.286 for Intel; 60% of initial levels
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| Downside thresholds: | $45.408 for Citi, $67.434 for Dollar, $35.286 for Intel; 60% of initial levels
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| Pricing date: | Nov. 25
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| Settlement date: | Nov. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.35%
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| Cusip: | 61769HR23
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