Published on 7/21/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $250,000 callable contingent income securities on indexes
By William Gullotti
Buffalo, N.Y., July 21 – Morgan Stanley Finance LLC sold $250,000 of callable contingent income securities due June 1, 2026 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.
The notes will pay a contingent quarterly coupon at the rate of 5.5% 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 on any quarterly observation date after six months.
The payout at maturity will be par plus the coupon unless any index finishes below its 70% downside threshold, in which case investors will be fully exposed to the decline of the least 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
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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: | $250,000
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Maturity: | June 1, 2026
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Coupon: | 5.5% per year, payable quarterly 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 on any quarterly observation date after six months
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Payout at maturity: | Par plus coupon unless any index finishes below its downside threshold, in which case investors will be fully exposed to the decline of the least performing index from its initial level
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Initial levels: | 34,464.64 for Dow, 2,273.073 for Russell, 4,200.88 for S&P
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Coupon threshold levels: | 24,125.248 for Dow, 1,591.151 for Russell, 2,940.616 for S&P; 70% of initial levels
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Downside threshold levels: | 24,125.248 for Dow, 1,591.151 for Russell, 2,940.616 for S&P; 70% of initial levels
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Pricing date: | May 27
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Settlement date: | June 2
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.5%
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Cusip: | 61771VZB9
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