Published on 3/26/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., March 26 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due Dec. 22, 2021 linked to the least performing of the Dow Jones industrial average, the Euro Stoxx 50 index and the Russell 2000 index, 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 33.9% 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 determination date after six months.
The payout at maturity will be par plus any coupon due unless any index closes below its 70% downside threshold on any day during the life of the notes, 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: | Dow Jones industrial average, Euro Stoxx 50 and Russell 2000
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| Amount: | $250,000
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| Maturity: | Dec. 22, 2021
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| Coupon: | 33.9% per year, payable monthly 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 plus any coupon due unless any index closes below its downside threshold on any day during the life of the notes, in which case investors will lose 1% for every 1% that the 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 determination date after six months
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| Initial index levels: | 1,106.506 for Russell, 21,237.38 for Dow, 2,530.50 for Stoxx
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| Coupon barrier levels: | 774.554 for Russell, 14,866.166 for Dow, 1,771.35 for Stoxx; 70% of initial levels
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| Downside thresholds: | 774.554 for Russell, 14,866.166 for Dow, 1,771.35 for Stoxx; 70% of initial levels
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| Pricing date: | March 17
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| Settlement date: | March 20
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61770FRF5
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