Published on 8/21/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $654,000 callable contingent income notes on Dow, Nasdaq, Russell
By Kiku Steinfeld
Chicago, Aug. 23 – Morgan Stanley Finance LLC priced $654,000 of callable contingent income securities due Aug. 4, 2026 tied to the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 6.75% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date that period.
The notes will be callable at par quarterly after six months.
If the lowest-performing index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus any coupon due. If the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-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: | Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average
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Amount: | $654,000
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Maturity: | Aug. 4, 2026
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Coupon: | 6.75% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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Call option: | At par on any quarterly date after six months
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Initial levels: | 34,935.47 for Dow, 2,226.246 for Russell and 14,959.90 for Nasdaq
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Coupon barriers: | 26,201.603 for Dow, 1,669.685 for Russell and 11,219.925 for Nasdaq; 75% of initial levels
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Downside threshold levels: | 24,454.829 for Dow, 1,558.372 for Russell and 10,471.93 for Nasdaq; 70% of initial levels
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Pricing date: | July 30
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Settlement date: | Aug. 4
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.625%
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Cusip: | 61773FFL2
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