Published on 12/5/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $10.29 million callable contingent income notes on indexes
By Taylor Fox
New York, Dec. 7 – Morgan Stanley Finance LLC priced $10.29 million of callable contingent income securities due Nov. 28, 2025 tied to the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 9.25% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be callable at par quarterly after six months.
If the lowest-performing index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus any final coupon. If the lowest-performing index finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $10,285,000
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Maturity: | Nov. 28, 2025
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Coupon: | 9.25% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold level, par plus any coupon due; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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Call option: | At par on any quarterly redemption date after six months
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Initial levels: | 12,079.81 for Nasdaq, 1,853.532 for Russell, 3,635.41 for S&P
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Coupon barriers: | 8,455.867 for Nasdaq, 1,297.472 for Russell, 2,544.787 for S&P; 70% of initial levels
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Downside threshold levels: | 7,247.886 for Nasdaq, 1,112.119 for Russell, 2,181.246 for S&P; 60% of initial levels
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Pricing date: | Nov. 24
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Settlement date: | Nov. 30
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Agent: | Morgan Stanley & Co. LLC
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Fees: | None
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Cusip: | 61771ELZ9
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