Published on 10/30/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $16.00 million trigger callable notes on three indexes
By Marisa Wong
Los Angeles, Oct. 30 – Morgan Stanley Finance LLC priced $15,997,000 of trigger callable contingent yield notes with daily coupon observation due Aug. 2, 2022 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes pay a contingent coupon at a rate of 11.49% per year if each index closes at or above its coupon barrier, 70% of its initial level, on each day that quarter.
The notes are callable at par of $10 plus any coupon due on any quarterly coupon payment date.
If the notes are not called and each index finishes at or above its downside threshold, 55% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
Morgan Stanley & Co. LLC is the underwriter, and UBS Financial Services Inc. is the dealer.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Nasdaq-100 index
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| Amount: | $15,997,000
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| Maturity: | Aug. 2, 2022
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| Coupon: | 11.49% per year, payable each quarter that each index closes at or above its coupon barrier on each day that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, full exposure to decline of least-performing index below its initial level
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| Call option: | At par plus any coupon due on any quarterly coupon payment date
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| Initial levels: | 3,271.03 for S&P, 1,543.275 for Russell, 11,142.76 for Nasdaq
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| Coupon barriers: | 2,289.72 for S&P, 1,080.293 for Russell, 7,799.93 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 1,799.07 for S&P, 848.801 for Russell, 6,128.52 for Nasdaq; 55% of initial levels
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| Pricing date: | Oct. 28
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| Settlement date: | Oct. 30
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| Underwriter: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
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| Fees: | 1.25%
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| Cusip: | 61771G210
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