Published on 4/30/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $11.41 million contingent income autocalls on three stocks
By Wendy Van Sickle
Columbus, Ohio, April 30 – Morgan Stanley Finance LLC priced $11.41 million of contingent income autocallable securities due May 2, 2024 tied to the common stocks of Amazon.com, Inc., Netflix, Inc. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 21% per year if each stock closes at or above its coupon barrier level, 55% of its initial level, on the observation date that period.
The notes will be automatically called at par if each stock closes at or above its initial level on any quarterly call determination date after six months.
If the lowest-performing stock finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par. If the lowest-performing stock finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing stock from its initial level.
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: | Amazon.com, Inc., Netflix, Inc. and Tesla, Inc.
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| Amount: | $11,409,000
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| Maturity: | May 2, 2024
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| Coupon: | 21% per year, payable quarterly if each stock closes at or above coupon barrier level on any observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold level, par; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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| Call option: | At par if each stock closes at or above its initial level on any quarterly call determination date after six months
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| Initial levels: | $3,417.43 for Amazon, $505.55 for Netflix and $704.74 for Tesla
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| Coupon barrier levels: | $1,879.587 for Amazon, $278.053 for Netflix and $387.607 for Tesla, 55% of initial levels
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| Downside threshold levels: | $1,708.715 for Amazon, $252.775 for Netflix and $352.37 for Tesla, 50% of initial levels
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| Pricing date: | April 27
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| Settlement date: | April 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.25%
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| Cusip: | 61771VTS9
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