Published on 4/2/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million contingent income autocalls on Dow, S&P, Stoxx
By Wendy Van Sickle
Columbus, Ohio, April 2 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due March 25, 2025 linked to the least performing of the Dow Jones industrial average, the S&P 500 index and the Euro Stoxx 50 index, 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 the rate of 16.75% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date after one year.
The payout at maturity will be par plus any coupon due unless any index finishes below its 70% downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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 indexes: | Dow Jones industrial average, S&P 500 and Euro Stoxx 50
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| Amount: | $1 million
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| Maturity: | March 25, 2025
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| Coupon: | 16.75% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus any coupon due unless any index finishes below its downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level
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| Call: | Automatically at par if each index closes at or above initial level on any quarterly determination date after one year
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| Initial index levels: | 2,548.5 for Stoxx, 2,304.92 for S&P, 19,173.98 for Dow
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| Coupon barrier levels: | 1,911.375 for Stoxx, 1,728.69 for S&P, 14,380.485 for Dow; 75% of initial levels
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| Downside thresholds: | 1,783.95 for Stoxx, 1,613.444 for S&P, 13,421.786 for Dow; 70% of initial levels
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| Pricing date: | March 20
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| Settlement date: | March 25
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.625%
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| Cusip: | 61770FTM8
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