Published on 9/24/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $29.5 million callable contingent income securities on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 24 – Morgan Stanley Finance LLC sold $29.5 million of callable contingent income securities due Sept. 21, 2023 tied to the worst performing of the Nasdaq-100 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 10.6% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on each business day that quarter.
The notes will be callable at par plus any coupon due on any quarterly observation date.
If the notes are not called and each index finishes at or above its 75% downside threshold, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
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: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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| Amount: | $29,496,000
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| Maturity: | Sept. 21, 2023
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| Coupon: | 10.6% per year, payable quarterly if each index closes at or above its coupon threshold level on each day that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if each index finishes at or above downside threshold; otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level
|
| Call option: | At par plus any coupon due on any quarterly observation date
|
| Initial levels: | 15,333.47 for Nasdaq, 2,236.81 for Russell, 4,432.99 for S&P
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| Coupon threshold levels: | 11,500.103 for Nasdaq, 1,677.653 for Russell, 3,324.743 for S&P; 75% of initial levels
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| Downside threshold levels: | 11,500.103 for Nasdaq, 1,677.653 for Russell, 3,324.743 for S&P; 75% of initial levels
|
| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.67%
|
| Cusip: | 61773FYA5
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