Published on 5/21/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million autocallable jump securities tied to three indexes
By Sarah Lizee
Olympia, Wash., May 21 – Morgan Stanley Finance LLC priced $1 million of 0% jump securities with autocallable feature due May 22, 2025 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 10% if each index closes at or above its initial level on any annual observation date.
The payout at maturity will be par plus 50% if each index finishes at or above its initial level. If the worst performing index declines but by no more than 40%, the payout will be par. If the worst performing index finishes below its 70% downside threshold level, investors will be fully exposed to the decline.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
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| Amount: | $1 million
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| Maturity: | May 22, 2025
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus 10% a year if each index closes above initial level on any annual review date
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| Payout at maturity: | Par plus 50% if each index finishes at or above its initial level; if the worst performing index declines but by no more than 40%, par; if the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline
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| Initial levels: | 9,331.926 for Nasdaq, 24,597.37 for Dow, 1,333.689 for Russell
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| Downside thresholds: | 5,599.156 for Nasdaq, 14,758.422 for Dow, 800.213 for Russell; 60% of initial levels
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| Pricing date: | May 18
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| Settlement date: | May 21
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.625%
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| Cusip: | 61771BAJ3
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