Published on 3/27/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.23 million callable contingent income securities linked to indexes
By Wendy Van Sickle
Columbus, Ohio, March 27 – Morgan Stanley Finance LLC priced $1.23 million of callable contingent income securities due March 24, 2025 linked to 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.
Each quarter, the notes will pay a contingent coupon at the rate of 18.75% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date that quarter.
If the lowest-performing index finishes at or above its knock-in level, 60% of its initial level, the payout at maturity will be par plus the final coupon, if any. If the lowest-performing index finishes below its knock-in level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
Beginning Sept. 24, 2020, the notes will be callable at par on any quarterly redemption date.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
|
| Amount: | $1.23 million
|
| Maturity: | March 24, 2025
|
| Coupon: | 18.75% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above knock-in level, par; if any index finishes below knock-in level, full exposure to decline of lowest-performing index from its initial level
|
| Call option: | Beginning March 8, 2021 at par on any quarterly redemption date after six months
|
| Initial levels: | 1,058.75 for Russell, 7,288.523 for Nasdaq, 20,087.19 for Dow
|
| Coupon barriers: | 635.25 for Russell, 4,373.114 for Nasdaq, 12,052.314 for Dow; 60% of initial levels
|
| Knock-in levels: | 635.25 for Russell, 4,373.114 for Nasdaq, 12,052.314 for Dow; 60% of initial levels
|
| Pricing date: | March 19
|
| Settlement date: | March 24
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.625%
|
| Cusip: | 61770FVF0
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
