Published on 9/25/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $560,000 contingent income autocallables on indexes
By Taylor Fox
New York, Sept. 25 – Morgan Stanley Finance LLC sold $560,000 of contingent income autocallable securities, with one-year initial non-call period, due Sept. 15, 2022 tied to the lesser performing of the Dow Jones industrial average, the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 5.25% per year if each index closes above its 60% coupon threshold level on the related observation date.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly redemption determination date after one year.
The payout at maturity will be par plus any coupon due unless any index finishes below its 50% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.
The notes are guaranteed by Morgan Stanley.
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, Nasdaq-100 index and S&P 500 index
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Amount: | $560,000
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Maturity: | Sept. 15, 2022
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Price: | Par
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Contingent coupon: | 5.25% per year, paid quarterly if all indexes close above coupon threshold level on related observation date
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Payout at maturity: | Par plus any coupon unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
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Call: | Automatically at par plus coupon if each index closes at or above initial level on any quarterly redemption determination date after one year
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Initial levels: | 27,534.58 for Dow, 11,154.12 for Nasdaq, 3,339.19 for S&P
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Coupon thresholds: | 16,520.748 for Dow, 6,692.472 for Nasdaq, 2,003.514 for S&P, or 60% of initial levels
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Downside threshold levels: | 13,767.29 for Dow, 5,577.06 for Nasdaq, 1,669.595 for S&P, or 50% of initial levels
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Pricing date: | Sept. 10
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Settlement date: | Sept. 15
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Agent: | Morgan Stanley & Co. LLC
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Fees: | None
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Cusip: | 61771B3N2
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