Published on 5/26/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $795,000 contingent income autocallable securities on four stocks
By William Gullotti
Buffalo, N.Y., May 26 – Morgan Stanley Finance LLC priced $795,000 of contingent income autocallable securities due May 5, 2026 linked to the worst performing of the shares of Boeing Co., Altria Group, Inc., NRG Energy, Inc. and PayPal Holdings, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 9.75% if each underlying stock closes at or above its 60% coupon barrier on the observation date for that month.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any monthly review date after one year.
The payout at maturity will be par plus any coupon due unless either underlying stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
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: | Boeing Co., Altria Group, Inc., NRG Energy, Inc., PayPal Holdings, Inc.
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| Amount: | $795,000
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| Maturity: | May 5, 2026
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| Coupon: | 9.75% annualized, payable monthly if each stock closes at or above coupon barrier on review date for that month
|
| Price: | Par
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| 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
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| Call: | At par plus coupon if each stock closes at or above its initial level on any monthly call date after one year
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| Initial levels: | $234.31 for Boeing, $47.75 for Altria Group, $35.82 for NRG, $262.29 for PayPal
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| Coupon barrier levels: | $140.586 for Boeing, $28.65 for Altria Group, $21.492 for NRG, $157.374 for PayPal; 60% of initial levels
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| Downside thresholds: | $140.586 for Boeing, $28.65 for Altria Group, $21.492 for NRG, $157.374 for PayPal; 60% of initial levels
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| Pricing date: | April 30
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| Settlement date: | May 5
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4%
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| Cusip: | 61771VWY2
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