Published on 7/20/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.53 million contingent income buffered securities on Russell
By Wendy Van Sickle
Columbus, Ohio, July 20 – Morgan Stanley Finance LLC priced $1.53 million of contingent income buffered securities due July 12, 2023 linked to the common stocks of Amazon.com, Inc., Microsoft Corp. and Oracle Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annualized rate of 3% if the laggard stock closes at or above the 50% coupon barrier level on the determination date for that quarter. Otherwise, no coupon will be paid.
If the final share price of each stock is greater than or equal to 70% of its initial share price, the payout at maturity will be par plus the final contingent quarterly coupon.
If the final share price of any stock is less than 70% of its initial share price, investors will lose 1% for every 1% that the laggard stock declines beyond 30%. If the final share price of each stock is greater than or equal to its coupon barrier level, investors will also receive the final contingent quarterly coupon.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income buffered securities
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| Underlying stocks: | Amazon.com, Inc., Microsoft Corp. and Oracle Corp.
|
| Amount: | $1,525,000
|
| Maturity: | July 12, 2023
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| Coupon: | 3% per year if laggard stock closes at or above coupon barrier level on quarterly determination date; otherwise, no coupon will be paid that quarter
|
| Price: | Par of $1,000
|
| Payout at maturity: | If final share price of each stock is greater than or equal to buffer level, par plus final contingent quarterly coupon; otherwise, par plus final contingent quarterly coupon, if any, and minus 1% for every 1% that laggard stock declines beyond 30%
|
| Initial levels: | $3,696.58 for Amazon, $279.93 for Microsoft, $86.09 for Oracle
|
| Coupon barriers: | $1,848.29 for Amazon, $139.965 for Microsoft, $43.045 for Oracle, 50% of initial levels
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| Buffer levels: | $2,587.606 for Amazon, $195.951 for Microsoft, $60.263 for Oracle, 70% of initial levels
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| Pricing date: | July 8
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| Settlement date: | July 13
|
| Agents: | Morgan Stanley & Co. LLC
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| Fees: | 0.8%
|
| Cusip: | 61773FFV0
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