Published on 9/4/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million autocallable jump securities on Dow, Russell, S&P
By Sarah Lizee
Olympia, Wash., Sept. 4 – Morgan Stanley Finance LLC priced $1 million of 0% jump securities with autocallable feature due Sept. 5, 2025 linked to the worst performing of the Russell 2000 index, the S&P 500 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 7.5% if each index closes at or above its initial level on any annual observation date.
If each index finishes at or above its initial level, the payout will be par plus 37.5%. If the worst performing index declines by up to 40%, the payout will be par. If the worst performing index finishes below its 60% downside threshold level, investors will be fully exposed to the decline.
Morgan Stanley & Co. LLC is the agent.
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, S&P 500 index and Dow Jones industrial average
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Amount: | $1 million
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Maturity: | Sept. 5, 2025
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Coupon: | 0%
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Price: | Par
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Call: | At par plus an annual premium of 7.5% if each index closes at or above its initial level on any annual observation date
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Payout at maturity: | If each index finishes at or above its initial level, par plus 37.5%; if the worst performing index declines by up to 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: | 3,526.65 for S&P, 28,645.66 for Dow, 1,578.581 for Russell
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Downside thresholds: | 2,115.99 for S&P, 17,187.396 for Dow, 947.149 for Russell; 60% of initial levels
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Pricing date: | Sept. 1
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Settlement date: | Sept. 4
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.625%
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Cusip: | 61771BT46
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