Published on 4/5/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $12.53 million contingent income autocalls on four stocks
By Wendy Van Sickle
Columbus, Ohio, April 5 – Morgan Stanley Finance LLC priced $12.53 million of contingent income autocallable securities due March 30, 2023 tied to an equally weighted basket of the stocks of Apple Inc., Shopify Inc., PayPal Holdings, Inc. and Square, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 7.25% per year if the basket closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be automatically called at par if the basket closes at or above its initial level on any monthly call determination date after six months.
If the basket finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon. If the basket finishes below its downside threshold level, investors will be fully exposed to the decline of the basket from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
|
Guarantor: | Morgan Stanley
|
Issue: | Contingent income autocallable securities
|
Underlying stocks: | Apple Inc., Shopify Inc., PayPal Holdings, Inc. and Square, Inc., equal weights
|
Amount: | $12,533,000
|
Maturity: | March 30, 2023
|
Coupon: | 7.25% per year, payable monthly if the basket closes at or above coupon barrier level on any observation date
|
Price: | Par
|
Payout at maturity: | If the basket finishes at or above downside threshold level, par; if the basket finishes below downside threshold level, full exposure to decline of basket from its initial level
|
Call option: | At par if the basket closes at or above its initial level on any monthly call determination date after six months
|
Initial levels: | $121.21 for Apple, $1,065.21 for Shopify, $241.03 for PayPal Holdings and $213.60 for Square
|
Coupon barriers: | 70% of initial levels
|
Downside threshold levels: | 60% of initial levels
|
Pricing date: | March 26
|
Settlement date: | March 31
|
Agent: | Morgan Stanley & Co. LLC
|
Fees: | 2.5%
|
Cusip: | 61771VJL5
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.