Published on 5/19/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.32 million callable contingent income securities on indexes
By William Gullotti
Buffalo, N.Y., May 19 – Morgan Stanley Finance LLC sold $1.32 million of callable contingent income securities due April 14, 2025 tied to the worst performing of 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 monthly contingent coupon at the rate of 6% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the related determination date.
The notes will be callable at par plus the coupon on any quarterly observation date starting Oct. 15.
The payout at maturity will be par plus any coupon due unless any index finishes below its 65% 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: | Callable contingent income securities
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Underlying indexes: | Dow Jones industrial average, Russell 2000 index, S&P 500 index
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Amount: | $1,318,000
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Maturity: | April 14, 2025
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Coupon: | 6% per year, payable monthly if each index closes at or above its coupon threshold level on the related determination date
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Price: | Par
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Call option: | At par plus coupon on any quarterly observation date starting Oct. 15
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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 be fully exposed to the performance of the least performing index
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Initial levels: | 33,800.6 for Dow, 2,243.474 for Russell, 4,128.8 for S&P
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Coupon threshold levels: | 23,660.42 for Dow, 1,458.258 for Russell, 2,890.16 for S&P; or 70% of initial levels
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Downside threshold levels: | 21,970.39 for Dow, 1,420.697 for Russell, 2,683.72 for S&P; or 65% of initial levels
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Pricing date: | April 9
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Settlement date: | April 14
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.75%
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Cusip: | 61771VTK6
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