Published on 2/9/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocalls on three stocks
By Kiku Steinfeld
Chicago, Feb. 10 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Jan. 30, 2025 linked to the worst performing of the common stocks of Grubhub Inc., Roku, Inc. and TripAdvisor, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annual rate of 21% if each stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
Beginning April 30, the notes will be called at par plus the contingent coupon if each stock closes above 90% of its initial level on any monthly redemption date.
The payout at maturity will be par unless any stock finishes below its 50% 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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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Grubhub Inc., Roku, Inc. and TripAdvisor, Inc.
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| Amount: | $1,000,000
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| Maturity: | Jan. 30, 2025
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| Coupon: | 21% per year, payable each month that each stock closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
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| Call: | Beginning April 30, the notes will be called at par plus the contingent coupon if each stock closes above 90% of its initial level on any monthly redemption date
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| Initial share prices: | $56.90 for Grubhub, $126.21 for Roku and $28.94 for Trip Advisor
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| Call levels: | $51.21 for Grubhub, $113.589 for Roku and $26.046 for Trip Advisor; 90% of initial levels
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| Coupon barriers: | $34.14 for Grubhub, $75.726 for Roku and $17.364 for Trip Advisor; 60% of initial share prices
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| Downside thresholds: | $28.45 for Grubhub, $63.105 for Roku and $14.47 for Trip Advisor; 50% of initial share prices
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| Pricing date: | Jan. 27
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| Settlement date: | Jan. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61770FDZ6
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