Published on 11/25/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million contingent income autocallables linked to Russell, Nasdaq, Dow
By Sarah Lizee
Olympia, Wash., Nov. 25 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due May 20, 2021 tied to the lesser performing of the Russell 2000 index, the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the determination date for that month.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly redemption determination date after six months.
The payout at maturity will be par plus the coupon unless any index ever closes below its 70% downside threshold, in which case investors will be fully exposed to the performance of the least performing index, subject to a maximum payout of par.
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: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000, Nasdaq-100, Dow Jones industrial average
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| Amount: | $1 million
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| Maturity: | May 20, 2021
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| Coupon: | 7% per year, payable monthly if each index closes at or above coupon threshold level on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par plus the coupon unless any index ever closes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index, subject to a maximum payout of par
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| Call: | Automatically at par plus coupon if each index closes at or above initial level on any quarterly redemption determination date after six months
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| Initial levels: | 1,596.454 for Russell 2000, 8,315.523 for Nasdaq-100, 28,004.89 for Dow
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| Downside threshold levels: | 1,117.518 for Russell 2000, 5,820.866 for Nasdaq-100, 19,603.423 for Dow, or 70% of initial levels
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| Coupon thresholds: | 1,117.518 for Russell 2000, 5,820.866 for Nasdaq-100, 19,603.423 for Dow, or 70% of initial levels
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| Pricing date: | Nov. 15
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| Settlement date: | Nov. 20
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.125%
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| Cusip: | 61769HG25
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