Published on 4/4/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $874,000 contingent income autocallable securities on four stocks
By William Gullotti
Buffalo, N.Y., April 4 – Morgan Stanley Finance LLC priced $874,000 of contingent income autocallable securities due May 8, 2026 linked to the worst performing of the shares of Boeing Co., Domino’s Pizza, Inc., Anheuser-Busch InBev SA/NV and Marriott International, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6.5% if each underlying stock closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above its call level, 95% of the initial level, on any quarterly review date after six months.
The payout at maturity will be par plus any coupon due unless any underlying stock finishes below its 50% 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
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| Issue: | Contingent income autocallable securities
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| Guarantor: | Morgan Stanley
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| Underlying stocks: | Boeing Co., Domino’s Pizza, Inc., Anheuser-Busch InBev SA/NV, Marriott International, Inc.
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| Amount: | $874,000
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| Maturity: | May 8, 2026
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| Coupon: | 6.5% annualized, payable quarterly if each stock closes at or above coupon barrier on review date for that period
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| 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 call level, 95% of initial level, on any quarterly call date after six months
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| Initial levels: | $228.18 for Boeing, $431.89 for Domino’s, $70.62 for InBev, $144.51 for Marriott
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| Call threshold levels: | $216.771 for Boeing, $410.296 for Domino’s, $67.089 for InBev, $137.285 for Marriott; 95% of initial levels
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| Coupon barrier levels: | $136.908 for Boeing, $259.134 for Domino’s, $42.372 for InBev, $86.706 for Marriott; 60% of initial levels
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| Downside thresholds: | $114.09 for Boeing, $215.945 for Domino’s, $35.31 for InBev, $72.255 for Marriott; 50% of initial levels
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| Pricing date: | May 5, 2021
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| Settlement date: | May 10, 2021
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4%
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| Cusip: | 61771VYB0
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