Published on 5/8/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $6.65 million contingent income autocalls on stocks
By Sarah Lizee
Olympia, Wash., May 8 – Morgan Stanley Finance LLC priced $6.65 million of contingent income autocallable securities due May 4, 2023 linked to the worst performing of the common stocks of Chipotle Mexican Grill, Inc., Domino’s Pizza, Inc. and Shake Shack Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 26.25% if each stock closes at or above its coupon barrier, 50% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly 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. Morgan Stanley Wealth Management is the dealer.
| 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: | Chipotle Mexican Grill, Inc., Domino’s Pizza, Inc. and Shake Shack Inc.
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| Amount: | $6,645,000
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| Maturity: | May 4, 2023
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| Coupon: | 26.25% per year, payable each quarter that each stock closes at or above coupon barrier on determination date for that period
|
| 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: | Par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date
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| Initial share prices: | $874.92 for Chipotle, $357.30 for Domino’s, $51.70 for Shake
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| Coupon barriers: | $437.46 for Chipotle, $178.65 for Domino’s, $25.85 for Shake; 50% of initial share prices
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| Downside thresholds: | $437.46 for Chipotle, $178.65 for Domino’s, $25.85 for Shake; 50% of initial share prices
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| Pricing date: | May 1
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| Settlement date: | May 5
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 61769P594
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