Published on 7/2/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.1 million callable contingent income notes linked to indexes
By Sarah Lizee
Olympia, Wash., July 2 – Morgan Stanley Finance LLC priced $1.1 million of callable contingent income securities due June 27, 2025 tied to the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 5.25% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period.
The notes will be callable at par quarterly after six months.
If the lowest-performing index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
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: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
|
| Amount: | $1.1 million
|
| Maturity: | June 27, 2025
|
| Coupon: | 5.25% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
|
| Call option: | At par on any quarterly redemption date after six months
|
| Initial levels: | 3,050.33 for S&P, 1,389.741 for Russell, 25,445.94 for Dow
|
| Coupon barriers: | 1,830.198 for S&P, 833.845 for Russell, 15,267.564 for Dow; 60% of initial levels
|
| Downside threshold levels: | 1,830.198 for S&P, 833.845 for Russell, 15,267.564 for Dow; 60% of initial levels
|
| Pricing date: | June 24
|
| Settlement date: | June 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61771BPX6
|
|
|
© 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.
