Published on 3/10/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.86 million callable contingent income securities on indexes
By Taylor Fox
New York, March 10 – Morgan Stanley Finance LLC sold $1.86 million of callable contingent income securities due Aug. 31, 2023 tied to the worst performing of the Russell 2000 index, the S&P 500 index 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 8.14% per year if each index closes at or above its coupon threshold level, 50% of its initial level, on the related determination date.
The notes will be callable at par on any quarterly observation date.
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: | Callable contingent income securities
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| Underlying indexes: | Russell 2000 index, S&P 500 index and Nasdaq-100 index
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| Amount: | $1,863,000
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| Maturity: | Aug. 31, 2023
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| Coupon: | 8.14% per year, payable each month if each index closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
|
| Call option: | At par on any quarterly observation date
|
| Payout at maturity: | Par plus 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
|
| Initial levels: | 2,201.051 for Russell, 12,909.44 for Nasdaq and 3,811.15 for S&P
|
| Coupon threshold levels: | 1,540.736 for Russell, 9,036.608 for Nasdaq and 2,667.805 for S&P, or 70% of initial levels
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| Downside threshold levels: | 1,100.526 for Russell, 6,454.72 for Nasdaq and 1,905.575 for S&P, or 50% of initial levels
|
| Pricing date: | Feb. 26
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| Settlement date: | March 3
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.6%
|
| Cusip: | 61771VAD2
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