Published on 9/6/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million callable contingent income notes linked to indexes
By Sarah Lizee
Olympia, Wash., Sept. 6 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due Aug. 1, 2024 linked 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 are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 7.1% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation day for that quarter.
Beginning Sept. 3, 2020, the notes will be callable at par on any quarterly redemption date.
The payout at maturity will be par unless the least-performing index finishes below its downside threshold level, 60% of its initial level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | Nasdaq-100, Russell 2000 and Dow Jones industrial average
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| Amount: | $1 million
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| Maturity: | Aug. 1, 2024
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| Coupon: | 7.1% per year, payable quarterly if each index closes at or above coupon barrier level on observation day for that quarter
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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, 1% loss for every 1% that least-performing index declines from initial level
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| Call option: | Beginning Sept. 3, 2020 at par on any quarterly redemption date
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| Initial levels: | 26,362.25 for Dow, 1,496.720 for Russell, 7,702.312 for Nasdaq
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| Coupon barriers: | 19,771.688 for Dow, 1,122.540 for Russell, 5,776.734 for Nasdaq, or 75% of initial levels
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| Downside thresholds: | 15,817.35 for Dow, 898.032 for Russell, 4,621.387 for Nasdaq, or 60% of initial levels
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| Pricing date: | Aug. 29
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| Settlement date: | Sept. 4
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.9%
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| Cusip: | 61769HRZ0
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