Published on 8/9/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $7 million contingent income autocallables on credit card stocks
By William Gullotti
Buffalo, N.Y., Aug. 9 – Morgan Stanley Finance LLC priced $7 million of contingent income autocallable securities due Aug. 8, 2024 linked to the shares of American Express Co., Mastercard Inc. and Visa Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8.55% if each underlying stock closes at or above its 75% coupon barrier on the corresponding observation date.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any quarterly review date after six months.
The payout at maturity will be par unless any underlying stock finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Issue: | Contingent income autocallable securities
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| Guarantor: | Morgan Stanley
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| Underlying stocks: | American Express Co., Mastercard Inc., Visa Inc.
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| Amount: | $7,000,000
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| Maturity: | Aug. 8, 2024
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| Coupon: | 8.55% annualized, payable quarterly if each stock closes at or above coupon barrier on relevant review date
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| Price: | Par of $10
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing stock from initial level
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| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date after six months
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| Initial levels: | $168.06 for AmEx, $368.01 for Mastercard, $236.67 for Visa
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| Coupon barrier levels: | $126.045 for AmEx, $276.008 for Mastercard, $177.503 for Visa; 75% of initial levels
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| Downside thresholds: | $109.239 for AmEx, $239.207 for Mastercard, $153.836 for Visa; 65% of initial levels
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| Pricing date: | Aug. 4
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| Settlement date: | Aug. 9
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61772Y756
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