Published on 2/26/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 contingent income autocalls on four stocks
By Sarah Lizee
Olympia, Wash., Feb. 26 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Feb. 24, 2023 linked to the worst performing of the common stocks of Banco Bilbao Vizcaya Argentaria, SA, Bank of America Corp., Bank of New York Mellon Corp. and Wells Fargo & Co., 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 barrier level, 80% of its initial share price, on a monthly observation date, the notes will pay a contingent coupon that period at an annualized rate of 13.8%.
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 after three months.
If each stock’s final share price is greater than or equal to its 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 least-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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| Underliers: | Banco Bilbao Vizcaya Argentaria, SA, Bank of America Corp., Bank of New York Mellon Corp. and Wells Fargo & Co.
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| Amount: | $500,000
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| Maturity: | Feb. 24, 2023
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| Coupon: | 13.8% per year, payable monthly if each stock closes at or above coupon threshold level on observation date for that period
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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: | At par plus the contingent coupon if each stock closes at or above its initial share price on any monthly determination date after three months
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| Initial share prices: | €5.174 for Bilbao, $34.72 for BofA, $47.09 for Wells, $45.92 for BNY Mellon
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| Coupon barrier level: | €4.139 for Bilbao, $27.776 for BofA, $37.672 for Wells, $36.736 for BNY Mellon; 80% of initial share prices
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| Downside thresholds: | €3.104 for Bilbao, $20.832 for BofA, $28.254 for Wells, $27.552 for BNY Mellon; 60% of initial share prices
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| Pricing date: | Feb. 19
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| Settlement date: | Feb. 24
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3%
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| Cusip: | 61770FMF0
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