Published on 11/7/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.28 million contingent income autocalls on three stocks
By Kiku Steinfeld
Chicago, Nov. 6 – Morgan Stanley Finance LLC priced $1.28 million of contingent income autocallable securities due April 16, 2021 linked to the worst performing of the common stocks of Lockheed Martin Corp., Goldman Sachs Group, Inc. and UnitedHealth Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 65% of its initial share price, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annualized rate of 14.15%.
After six months, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly determination date.
If each stock’s final share price is greater than or equal to its 65% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
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 stocks: | Lockheed Martin Corp., Goldman Sachs Group, Inc., UnitedHealth Group Inc.
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| Amount: | $1,275,000
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| Maturity: | April 16, 2021
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| Coupon: | 14.15% per year, payable quarterly if each stock closes at or above coupon threshold level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | After six months, at par plus contingent quarterly coupon if each stock closes at or above initial share price on any quarterly determination date
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| Initial share prices: | $386.88 for Lockheed, $199.87 for Goldman, $223.73 for UnitedHealth
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| Coupon levels/downside thresholds: | $251.472 for Lockheed, $129.916 for Goldman, $145.425 for UnitedHealth; 65% of initial share price
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| Pricing date: | Oct. 11
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| Settlement date: | Oct. 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61769HZP3
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