Published on 8/5/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $450,000 contingent income autocalls on Dow, Russell
By Wendy Van Sickle
Columbus, Ohio, Aug. 5 – Morgan Stanley Finance LLC priced $450,000 of contingent income autocallable securities due July 31, 2025 linked to the least performing of the Dow Jones industrial average and the Russell 2000 index, 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 the rate of 5.5% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that month.
The notes will be automatically called at par if each index closes at or above its initial level on any quarterly call determination date after one year.
The payout at maturity will be par any index finishes below its 70% downside threshold, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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 indexes: | Dow Jones industrial average, Russell 2000 index
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| Amount: | $450,000
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| Maturity: | July 31, 2025
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| Coupon: | 5.5% per year, payable monthly if each index closes at or above barrier level on determination date for that month
|
| 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
|
| Call: | Automatically at par if each index closes at or above its initial level on any quarterly call determination date after one year
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| Initial levels: | 1,469.755 for Russell and 26,379.28 for Dow
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| Coupon barriers: | 1,028.829 for Russell and 18,465.496 for Dow; 70% of initial level
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| Downside thresholds: | 1,028.829 for Russell and 18,465.496 for Dow; 70% of initial level
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| Pricing date: | July 28
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| Settlement date: | July 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4.2%
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| Cusip: | 61771BSZ8
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