Published on 6/6/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million callable contingent income notes linked to indexes
By Angela McDaniels
Tacoma, Wash., June 6 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due June 5, 2024 linked 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 are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 8% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation day for that month.
Beginning June 4, 2020, the notes will be callable at par on any quarterly redemption date.
The payout at maturity will be par unless the least-performing index finishes below its downside threshold level, 60% of its initial level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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: | Nasdaq-100, Russell 2000 and Dow Jones industrial average
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| Amount: | $1 million
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| Maturity: | June 5, 2024
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| Coupon: | 8% per year, payable monthly if each index closes at or above coupon barrier level on observation day for that month
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, 1% loss for every 1% that least-performing index declines from initial level
|
| Call option: | Beginning June 4, 2020, at par on any quarterly redemption date
|
| Initial levels: | 7,127.956 for Nasdaq-100, 1,465.487 for Russell 2000 and 24,815.04 for Dow
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| Coupon barriers: | 4,989.569 for Nasdaq-100, 1,025.841 for Russell 2000 and 17,370.528 for Dow, or 70% of initial levels
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| Downside thresholds: | 4,276.774 for Nasdaq-100, 879.292 for Russell 2000 and 14,889.024 for Dow, or 60% of initial levels
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| Pricing date: | May 31
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| Settlement date: | June 5
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.075%
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| Cusip: | 61769HAB1
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