Published on 10/26/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $4 million jump securities with autocallable feature on indexes
By William Gullotti
Buffalo, N.Y., Oct. 26 – Morgan Stanley Finance LLC priced $4 million of 0% jump securities with autocallable feature due Oct. 23, 2026 linked to the worst performing of the Nasdaq-100 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will be called at par plus an annualized call premium of 13.55% if each index closes at or above its call level, 105% of initial level, on any annual observation date.
At maturity, if all indexes finish above their call levels, the payout will be par plus 67.75%.
If the worst performing index finishes below its call level but at or above its 70% downside threshold level, the payout will be par. If the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline of that index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, Dow Jones industrial average
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| Amount: | $4 million
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| Maturity: | Oct. 23, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If all indexes finish above call levels, par plus 67.75%; if the worst performing index finishes below its call level but at or above its downside threshold level, par; if the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline of that index from its initial level
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| Call: | At par plus an annualized call premium of 13.55% if each index closes at or above call level on any annual observation date
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| Initial levels: | 15,388.71 for Nasdaq, 2,289.765 for Russell, 35,609.34 for Dow
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| Call levels: | 16,158.146 for Nasdaq, 2,404.253 for Russell, 37,389.807 for Dow; 105% of initial levels
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| Downside threshold levels: | 10,772.097 for Nasdaq, 1,602.836 for Russell, 24,926.538 for Dow; 70% of initial levels
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| Pricing date: | Oct. 21
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| Settlement date: | Oct. 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61773F6X6
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