Published on 12/1/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.27 million contingent income autocallables on three stocks
By William Gullotti
Buffalo, N.Y., Dec. 1 – Morgan Stanley Finance LLC priced $2.27 million of contingent income autocallable securities due Dec. 1, 2023 linked to the shares of Airbnb, Inc., Meta Platforms, Inc. and Shopify 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 16% if each underlying stock closes at or above its 60% coupon barrier on the corresponding observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon payment is made.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons if each stock finishes at or above its coupon barrier.
If the worst performer finishes below the coupon barrier but at or above its 55% downside threshold, the payout at maturity will be par. Otherwise, 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
|
| Issue: | Contingent income autocallable securities
|
| Guarantor: | Morgan Stanley
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| Underlying stocks: | Airbnb, Inc., Meta Platforms, Inc., Shopify Inc.
|
| Amount: | $2,265,000
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| Maturity: | Dec. 1, 2023
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| Coupon: | 16% annualized, payable quarterly if each stock closes at or above coupon barrier on relevant review date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above coupon barrier, par plus final coupon and any unpaid coupons; if worst performer finishes below coupon barrier but not below downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing stock from initial level
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call date
|
| Initial levels: | $179.89 for Airbnb, $341.06 for Meta, $1,628.70 for Shopify
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| Coupon barrier levels: | $107.934 for Airbnb, $204.636 for Meta, $977.22 for Shopify; 60% of initial levels
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| Downside thresholds: | $98.94 for Airbnb, $187.583 for Meta, $895.785 for Shopify; 55% of initial levels
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| Strike date: | Nov. 24
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| Pricing date: | Nov. 26
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| Settlement date: | Dec. 3
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.84%
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| Cusip: | 61773HMJ5
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