Published on 4/8/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million contingent income autocalls on indexes, ETF
By Sarah Lizee
Olympia, Wash., April 8 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due April 5, 2022 linked to the least performing of the SPDR S&P MidCap 400 ETF, the Nasdaq-100 index and the S&P 500 index, 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 15% per year if each underlier closes at or above its coupon barrier level, 71% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par if each underlier closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par plus any coupon due unless any underlier finishes below its 71% downside threshold, in which case investors will lose 1% for every 1% that the least-performing underlier 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 underliers: | SPDR S&P MidCap 400 ETF, Nasdaq-100 and S&P 500
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| Amount: | $1 million
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| Maturity: | April 5, 2022
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| Coupon: | 15% per year, payable quarterly if each underlier 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 underlier finishes below its downside threshold, in which case investors will lose 1% for every 1% that the least-performing underlier declines from its initial level
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| Call: | Automatically at par if each underlier closes at or above initial level on any quarterly determination date
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| Initial underlier levels: | 2,584.59 for S&P, $262.88 for ETF, 7,813.499 for Nasdaq
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| Coupon barrier levels: | 1,835.059 for S&P, $186.645 for ETF, 5,547.584 for Nasdaq; 71% of initial levels
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| Downside thresholds: | 1,835.059 for S&P, $186.645 for ETF, 5,547.584 for Nasdaq; 71% of initial levels
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| Pricing date: | March 31
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| Settlement date: | April 6
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
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| Cusip: | 61770FZT6
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