Published on 6/17/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocalls on three stocks
By Sarah Lizee
Olympia, Wash., June 17 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due June 18, 2024 linked to the worst performing of the common stocks of Applied Materials, Inc., Twitter, Inc. and Dropbox, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its coupon threshold level, 60% of its initial share price, on a monthly observation date, the notes will pay a contingent payment that quarter at an annualized rate of 24%.
Beginning Sept. 18, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any monthly determination date.
If each stock’s final share price is greater than or equal to its 50% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
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 stocks: | Applied Materials, Inc., Twitter, Inc. and Dropbox, Inc.
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| Amount: | $1 million
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| Maturity: | June 18, 2024
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| Coupon: | 24% per year, payable monthly if each stock closes at or above coupon threshold level on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | Beginning Sept. 18, at par plus contingent coupon if each stock closes at or above initial share price on any monthly determination date other than final determination date
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| Initial share prices: | $41.65 for Applied, $36.34 for Twitter, $24.05 for Dropbox
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| Coupon thresholds: | $24.99 for Applied, $21.804 for Twitter, $14.43 for Dropbox; 60% of initial share price
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| Downside thresholds: | $20.825 for Applied, $18.17 for Twitter, $12.025 for Dropbox; 50% of initial share price
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| Pricing date: | June 13
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| Settlement date: | June 18
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61769HEL5
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