Published on 12/13/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $4.06 million callable contingent income notes on indexes
By Kiku Steinfeld
Chicago, Dec. 14 – Morgan Stanley Finance LLC priced $4.06 million of callable contingent income securities due Dec. 5, 2023 tied to the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 8.32% 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: | $4,058,000
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| Maturity: | Dec. 5, 2023
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| Coupon: | 8.32% 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: | 12,268.32 for Nasdaq, 29,638.64 for Dow, 1,819.816 for Russell
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| Coupon barriers: | 8,587.824 for Nasdaq, 20,747.048 for Dow, 1,273.871 for Russell; 70% of initial levels Downside threshold levels: | 7,360.992 for Nasdaq, 17,783.184 for Dow, 1,091.890 for Russell; 60% of initial levels
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 3
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61771EPD4
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