Published on 6/3/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., June 3 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due May 30, 2025 linked to the least performing of the Russell 2000 index, the Euro Stoxx 50 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date after six months.
The payout at maturity will be par plus any coupon due unless any index finishes below its 60% downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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, Euro Stoxx 50 index and Dow Jones industrial average
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| Amount: | $250,000
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| Maturity: | May 30, 2025
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| Coupon: | 7% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus any coupon due unless any index finishes below its downside threshold, 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: | Automatically at par if each index closes at or above initial level on any quarterly determination date after six months
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| Initial index levels: | 1,393.074 for Russell, 24,995.11 for Dow, 2,999.22 for S&P
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| Coupon barrier levels: | 975.152 for Russell, 17,496.577 for Dow, 2,099.454 for S&P; 70% of initial levels
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| Downside thresholds: | 835.844 for Russell, 14,997.066 for Dow, 1,799.532 for S&P; 60% of initial levels
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| Pricing date: | May 26
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| Settlement date: | May 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.625%
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| Cusip: | 61771BDH4
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