Published on 2/15/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $7.39 million callable contingent income notes on indexes
By Taylor Fox
New York, Feb. 16 – Morgan Stanley Finance LLC priced $7.39 million of callable contingent income securities due Jan. 26, 2026 tied to the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 10% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date that period.
The notes will be callable at par quarterly after six months.
If the lowest-performing index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon. If the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing index 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: | Callable contingent income securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $7,388,000
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| Maturity: | Jan. 26, 2026
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| Coupon: | 10% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
|
| Call option: | At par on any quarterly redemption date after six months
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| Initial levels: | 13,404.99 for Nasdaq, 2,141.421 for Russell, 31,176.01 for Dow
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| Coupon barrier levels: | 10,053.743 for Nasdaq, 1,606.066 for Russell, 23,382.008 for Dow; 75% of initial levels
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| Downside threshold levels: | 8,042.994 for Nasdaq, 1,284.853 for Russell, 18,705.606 for Dow; 60% of initial levels
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| Pricing date: | Jan. 21
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| Settlement date: | Jan. 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.625%
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| Cusip: | 61771EZM3
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