Published on 1/13/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $8 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 13 – Morgan Stanley Finance LLC priced $8 million of trigger callable contingent yield notes with daily coupon observation due Oct. 11, 2023 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 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 11% per year if each index closes at or above its coupon barrier level, 65% of its initial level, on every day during that quarter.
The notes will be callable at par of $10 plus any coupon on any quarterly observation date.
If the notes are not called and each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus any final coupon. Otherwise, investors will lose 1% for every 1% decline of the least-performing index.
Morgan Stanley & Co. LLC is the agent, and UBS Financial Services Inc. is acting as dealer
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Nasdaq-100 index
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| Amount: | $8 million
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| Maturity: | Oct. 11, 2023
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| Coupon: | 17% per year, payable quarterly if each index closes at or above its coupon barrier level on every day during that quarter
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| Price: | Par
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| Payout at maturity: | Par 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: | At par plus any coupon due on any quarterly call valuation date
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| Initial levels: | 12,802.38 for Nasdaq, 1,979.108 for Russell, 3,726.86 for S&P
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| Coupon barriers: | 8,321.55 for Nasdaq, 1,286.42 for Russell, 2,422.46 for S&P; 65% of initial levels
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| Downside thresholds: | 7,681.43 for Nasdaq, 1,187.465 for Russell, 2,236.12 for S&P; 60% of initial levels
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| Pricing date: | Jan. 5
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| Settlement date: | Jan. 8
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
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| Fees: | 1%
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| Cusip: | 61771J404
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