Published on 2/14/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $599,000 contingent income autocalls on indexes, ETF
By Sarah Lizee
Olympia, Wash., Feb. 14 – Morgan Stanley Finance LLC priced $599,000 of contingent income autocallable securities due Nov. 8, 2021 linked to the worst performing of the Euro Stoxx Banks index, the Nasdaq-100 index and the iShares Russell 2000 ETF, according to a 424B2 filing with the Securities and Exchange Commission.
If each underlier closes at or above its coupon threshold level, 70% of its initial level, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 6.25%.
The notes will be called at par plus the contingent coupon if each underlier closes at or above 95% of the initial share price on any quarterly determination date.
The payout at maturity will be par plus the final coupon unless any underlier ever closes below its 70% downside threshold on any day during the life of the notes, in which case investors will be fully exposed to the performance of the least performing underlier.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underliers: | Euro Stoxx Banks index, Nasdaq-100 index and iShares Russell 2000 ETF
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| Amount: | $599,000
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| Maturity: | Nov. 8, 2021
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| Coupon: | 6.25% per year, payable quarterly if each underlier closes at or above coupon threshold level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus coupon unless any underlier ever closes below its downside threshold on any day during life of the notes, in which case exposure to performance of least performing underlier
|
| Call: | At par plus contingent coupon if each underlier closes at or above 95% of initial level on any quarterly determination date
|
| Initial levels: | 93.94 for Stoxx, 9,334.056 for Nasdaq, $164.77 for ETF
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| Call levels: | 89.243 for Stoxx, 8,867.353 for Nasdaq, $156.532 for ETF, or 95% of initial levels
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| Coupon thresholds: | 65.758 for Stoxx, 6,533.839 for Nasdaq, $115.339 for ETF, or 70% of initial levels
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| Downside thresholds: | 65.758 for Stoxx, 6,533.839 for Nasdaq, $115.339 for ETF, or 70% of initial levels
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| Pricing date: | Feb. 4
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| Settlement date: | Feb. 7
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.875%
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| Cusip: | 61770FGQ3
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