Published on 11/24/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.37 million contingent income autocallables on indexes
By Taylor Fox
New York, Nov. 24 – Morgan Stanley Finance LLC sold $2.37 million of contingent income autocallable securities due Nov. 24, 2023 tied to the worst performing of the Russell 2000 index, the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 6.75% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the related determination date.
The notes will be automatically called at par plus the coupon if each index closes at or above its initial level on any quarterly redemption determination date starting May 18, 2021.
The payout at maturity will be par plus the coupon unless any index finishes below its 70% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average and Nasdaq-100 index
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| Amount: | $2,368,000
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| Maturity: | Nov. 24, 2023
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| Coupon: | 6.75% per year, payable each month if each index closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
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| Payout at maturity: | Par plus any coupon unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
|
| Call: | Automatically at par plus coupon if each index closes at or above initial level on any monthly redemption determination date starting May 18, 2021
|
| Initial levels: | 29,438.42 for Dow, 1,769.316 for Russell, 11,894.71 for Nasdaq
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| Coupon thresholds: | 20,606.894 for Dow, 1,238.521 for Russell, 8,326.297 for Nasdaq; 70% of initial levels
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| Downside threshold levels: | 20,606.894 for Dow, 1,238.521 for Russell, 8,326.297 for Nasdaq; 70% of initial levels
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| Pricing date: | Nov. 18
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| Settlement date: | Nov. 23
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.5%
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| Cusip: | 61771ELQ9
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