Published on 9/28/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $250,000 contingent income autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 28 – Morgan Stanley Finance LLC sold $250,000 of contingent income autocallable securities due March 23, 2022 tied to the worst performing of the Russell 2000 index, the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 5.25% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the related determination date.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly redemption determination date after six months.
The payout at maturity will be par plus the coupon unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.
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: | Contingent income autocallable securities
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Underlying indexes: | Russell 2000 index, S&P 500 index and Nasdaq-100 index
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Amount: | $250,000
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Maturity: | March 23, 2022
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Coupon: | 5.25% per year, payable each quarter if each index closes at or above its coupon threshold level on the related determination date
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Price: | Par
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Payout at maturity: | Par plus any coupon unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
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Call: | Automatically at par plus coupon if each index closes at or above initial level on any quarterly redemption determination date after six months
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Initial levels: | 1,536.779 for Russell, 3,319.47 for S&P, 10,936.98 for Nasdaq
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Coupon thresholds: | 1,075.745 for Russell, 2,323.629 for S&P, 7,655.886 for Nasdaq, or 70% of initial levels
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Downside threshold levels: | 977.067 for Russell, 1,991.682 for S&P, 6,562.188 for Nasdaq, or 60% of initial levels
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Pricing date: | Sept. 18
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Settlement date: | Sept. 23
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 1.875%
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Cusip: | 61771B4J0
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