Published on 3/9/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, March 9 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Dec. 2, 2021 linked to the least performing of the Russell 2000 index, the Euro Stoxx 50 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 month, the notes will pay a contingent coupon at the rate of 11.6% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that month.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly redemption date after six months.
The payout at maturity will be par unless any index finishes below its 70% downside threshold, 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
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000, Euro Stoxx 50 and Dow Jones Industrial Average
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| Amount: | $1 million
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| Maturity: | Dec. 2, 2021
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| Coupon: | 11.6% per year, payable monthy if each index closes at or above barrier level on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below its downside threshold, in which case 1% loss for every 1% that least-performing index declines from its initial level
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| Call: | Automatically at par if each index closes at or above initial level on any quarterly redmeption date after six months
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| Initial index levels: | 3,329.49 for Stoxx, 25,409.36 for Dow, 1,476.431 for Russell
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| Coupon barrier levels: | 2,330.643 for Stoxx, 17,786.552 for Dow, 1,033.502 for Russell; 70% of initial levels
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| Downside thresholds: | 2,330.643 for Stoxx, 17,786.552 for Dow, 1,033.502 for Russell; 70% of initial levels
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| Pricing date: | Feb. 28
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| Settlement date: | March 4
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61770FGZ3
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