Published on 6/30/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $15 million contingent income autocalls on three SPDR funds
By William Gullotti
Buffalo, N.Y., June 30 – Morgan Stanley Finance LLC priced $15 million of contingent income autocallable securities due June 28, 2023 linked to the shares of the SPDR S&P Biotech ETF, the Technology Select Sector SPDR Fund and the SPDR S&P Regional Banking ETF, according to a 424B2 filed with the Securities and Exchange Commission.
The securities are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 12.01% if each ETF closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par plus coupon if each ETF closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus any coupon due unless any ETF finishes below its 75% downside threshold, in which case investors will be fully exposed to the decline of the worst performer from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Issue: | Contingent income autocallable securities
|
| Guarantor: | Morgan Stanley
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| Underlying ETFs: | SPDR S&P Biotech ETF, Technology Select Sector SPDR Fund, SPDR S&P Regional Banking ETF
|
| Amount: | $15,000,000
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| Maturity: | June 28, 2023
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| Coupon: | 12.01% annualized, payable quarterly if each ETF closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing ETF from its initial level
|
| Call: | At par plus coupon if each ETF closes at or above its initial level on any quarterly call date
|
| Initial levels: | $138.68 for Biotech, $145.23 for Technology, $67.64 for Banking
|
| Coupon barrier levels: | $104.01 for Biotech, $108.923 for Technology, $50.73 for Banking; 75% of initial levels
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| Downside thresholds: | $104.01 for Biotech, $108.923 for Technology, $50.73 for Banking; 75% of initial levels
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| Pricing date: | June 25
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| Settlement date: | July 1
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.75%
|
| Cusip: | 61773FBP7
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