Published on 11/25/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.97 million contingent income autocallables on stocks
By Taylor Fox
New York, Nov. 25 – Morgan Stanley Finance LLC priced $1.97 million of contingent income autocallable securities due Nov. 23, 2022 linked to the worst performing of the common stocks of BlackRock, Inc., Vail Resorts, Inc. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes pay a contingent quarterly coupon at an annual rate of 23% if the shares of all stocks close at or above their 55% downside threshold levels on the observation date for that quarter.
After six months, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any quarterly determination date other than the final one.
The payout at maturity will be par unless any stock finishes below its 55% barrier, in which case investors will lose 1% for each 1% decline from the initial price for the worst performer.
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: | BlackRock, Inc., Vail Resorts, Inc. and Tesla, Inc.
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| Amount: | $1,965,000
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| Maturity: | Nov. 23, 2022
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| Coupon: | 23% per year, payable quarterly if least-performing stock closes at or above 55% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If least-performing stock’s final share price is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that least-performing stock’s final share price is less than initial share price
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| Call: | After six months, at par plus contingent coupon if each stock closes at or above initial share price on any quarterly determination date other than the final one
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| Initial share prices: | $669.89 for BlackRock, $270.10 for Vail and $486.64 for Tesla
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| Coupon barrier: | $368.44 for BlackRock, $148.555 for Vail and $267.652 for Tesla, 55% of initial level
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| Downside thresholds: | $368.44 for BlackRock, $148.555 for Vail and $267.652 for Tesla, 55% of initial level
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| Pricing date: | Nov. 18
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| Settlement date: | Nov. 23
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61771ELU0
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