Published on 6/25/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.8 million callable contingent income securities on indexes
By William Gullotti
Buffalo, N.Y., June 25 – Morgan Stanley Finance LLC sold $3.8 million of callable contingent income securities due May 15, 2025 tied to the worst performing of the Dow Jones industrial average, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Quarterly, the notes will pay a contingent coupon at the rate of 6.6% per year if each index closes at or above its coupon threshold level, 65% of its initial level, on the related determination date.
The notes will be callable at par on any quarterly observation date after six months.
The payout at maturity will be par plus the coupon if each index finishes at or above the coupon threshold.
If all indexes finishes at or above the 65% downside threshold, the payout will be par.
Otherwise, investors will be exposed to the decline of the worst performer from initial levels.
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, S&P 500 index, Russell 2000 index
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| Amount: | $3,800,000
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| Maturity: | May 15, 2025
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| Coupon: | 6.6% per year, payable quarterly if each index closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
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| Call option: | At par on any quarterly observation date after six months
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| Payout at maturity: | Par plus coupon if all indexes finish at or above coupon threshold; if the least performing index finishes at or above the downside threshold, par; otherwise investors will be fully exposed to the decline of the least performing index from initial level
|
| Initial levels: | 34,742.82 for Dow, 2,212.696 for Russell, 4,188.43 for S&P
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| Coupon threshold levels: | 24,319.974 for Dow, 1,548.887 for Russell, 2,931.901 for S&P; 70% of initial levels
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| Downside threshold levels: | 22,582.833 for Dow, 1,438.252 for Russell, 2,722.48 for S&P; 65% of initial levels
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| Pricing date: | May 10
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| Settlement date: | May 13
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61771VJ35
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