Published on 8/18/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.51 million contingent income autocallable securities on stocks
By William Gullotti
Buffalo, N.Y., Aug. 18 – Morgan Stanley Finance LLC priced $1.51 million of contingent income autocallable securities due May 16, 2023 linked to the shares of BlackRock, Inc., Tesla, Inc. and Facebook, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 18.9% if each underlying stock closes at or above its 55% coupon barrier on the observation date for that quarter. Previously unpaid coupons will also be paid.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any quarterly review date after six months.
The payout at maturity will be par plus any coupon due unless either underlying stock finishes below its 55% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | BlackRock, Inc., Tesla, Inc., Facebook, Inc.
|
| Amount: | $1,510,000
|
| Maturity: | May 16, 2023
|
| Coupon: | 18.9% annualized, payable quarterly if each stock closes at or above coupon barrier on review date for that quarter; previously unpaid coupons will also be paid
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing stock
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date after six months
|
| Initial levels: | $823.50 for BlackRock, $589.89 for Tesla, $302.55 for Facebook
|
| Coupon barrier levels: | $452.925 for BlackRock, $324.44 for Tesla, $166.403 for Facebook; 55% of initial levels
|
| Downside thresholds: | $452.925 for BlackRock, $324.44 for Tesla, $166.403 for Facebook; 55% of initial levels
|
| Pricing date: | May 12
|
| Settlement date: | May 14
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61771VP79
|
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