Published on 11/6/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2 million contingent income autocallables linked to indexes
By Sarah Lizee
Olympia, Wash., Nov. 6 – Morgan Stanley Finance LLC priced $2 million of contingent income autocallable securities due Nov. 3, 2026 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 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 8.1% 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.
Beginning Oct. 29, 2020, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly redemption determination date.
The payout at maturity will be par unless any index closes below its 70% downside threshold level in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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 index, S&P 500 index and Euro Stoxx 50 index
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| Amount: | $2 million
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| Maturity: | Nov. 3, 2026
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| Coupon: | 8.1% per year, payable monthly if each index closes at or above coupon threshold on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any index closes below its downside threshold level, 70% of its initial level 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: | Beginning Oct. 29, 2020, automatically at par if each index closes at or above initial level on any quarterly redemption determination date
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| Initial levels: | 1,535.482 for Russell 2000, 26,770.20 for Dow, 7,868.491 for Nasdaq
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| Coupon thresholds: | 1,074.837 for Russell, 18,739.14 for Dow, 5,507.944 for Nasdaq, or 70% of initial levels
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| Downside thresholds: | 921.289 for Russell, 16,062.12 for Dow, 6,062.12 for Nasdaq, or 70% of initial levels
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| Pricing date: | Oct. 29
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.35%
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| Cusip: | 61769HD28
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