Published on 3/28/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.25 million contingent income autocallable securities on stocks
By William Gullotti
Buffalo, N.Y., March 28 – Morgan Stanley Finance LLC priced $1.25 million of contingent income autocallable securities due May 2, 2023 linked to the worst performing of the common stocks of Activision Blizzard, Inc., Qualcomm Inc. and the class A subordinate voting shares of Shopify Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 13.75% if each underlying stock closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any quarterly review date after six months.
The payout at maturity will be par plus the coupon due unless any underlying stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
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: | Contingent income autocallable securities
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| Underlying stocks: | Activision Blizzard, Inc., Qualcomm Inc., Shopify Inc.
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| Amount: | $1,245,000
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| Maturity: | May 2, 2023
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| Coupon: | 13.75% annualized, payable quarterly if each stock closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par plus coupon due; otherwise, 1% loss for each 1% decline of worst performing stock
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| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date after six months
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| Initial levels: | $91.60 for Activision, $138.01 for Qualcomm, $1,156.89 for Shopify Inc.
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| Coupon barrier levels: | $54.96 for Activision, $82.806 for Qualcomm, $694.134 for Shopify Inc.; 60% of initial levels
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| Downside thresholds: | $54.96 for Activision, $82.806 for Qualcomm; $694.134 for Shopify Inc.; 60% of initial levels
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| Pricing date: | April 27, 2021
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| Settlement date: | April 30, 2021
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61771VB66
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