Published on 10/29/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $5.07 million autocallable jump securities on three indexes
By Sarah Lizee
Olympia, Wash., Oct. 29 – Morgan Stanley Finance LLC priced $5.07 million of 0% jump securities with autocallable feature due Nov. 3, 2025 linked to the worst performing of the S&P 500 index, Dow Jones industrial average and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 12% if each index closes at or above the applicable call level on any annual review date starting Oct. 26, 2020. The call level for each index will be 92% of its initial level for the first three review dates and 98% of its initial level for the last two review dates.
The payout at maturity will be par plus 72% if each index finishes at or above 98% of its initial level. If the worst performing index declines by more than 2% but by no more than 25%, the payout will be par. If the worst performing index finishes below its 75% downside threshold level, investors will be fully exposed to the decline of that index.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | S&P 500 index, Dow Jones industrial average and Russell 2000 index
|
| Amount: | $5,065,000
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| Maturity: | Nov. 3, 2025
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| Coupon: | 0%
|
| Price: | Par
|
| Call: | At par plus an annual premium of 12% if each index closes at or above the applicable call level on any annual review date starting Oct. 26, 2020; call level for each index will be 92% of its initial level for the first three review dates and 98% of its initial level for the last two review dates
|
| Payout at maturity: | Par plus 72% if each index finishes at or above 98% of its initial level; if the worst performing index declines by more than 2% but by no more than 25%, par; if the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline of that index
|
| Initial levels: | 3,022.55 for S&P, 26,958.06 for Dow, 1,558.708 for Russell
|
| Downside thresholds: | 2,266.913 for S&P, 20,218.545 for Dow, 1,169.031 for Russell; 75% of initial levels
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| Pricing date: | Oct. 25
|
| Settlement date: | Nov. 1
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61769HC60
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