Published on 2/15/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.24 million contingent income autocalls on three stocks
By Taylor Fox
New York, Feb. 16 – Morgan Stanley Finance LLC priced $2.24 million of contingent income autocallable securities due July 26, 2022 tied to the worst performing of the stocks of Square, Inc., Blackstone Group Inc. and Booking Holdings Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 8.04% per year if each stock closes at or above its coupon barrier level, 55% of its initial level, on the observation date that period. Previously unpaid coupons will also be paid.
The notes will be automatically called at par if each stock closes at or above 85% of its initial level on any monthly redemption determination date after four months.
If the lowest-performing stock finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus any final coupon due. If the lowest-performing stock finishes below its downside threshold level, investors will be fully exposed to the decline of the lowest-performing stock from its initial level.
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: | Square, Inc., Blackstone Group Inc. and Booking Holdings Inc.
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| Amount: | $2,241,000
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| Maturity: | July 26, 2022
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| Coupon: | 8.04% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date; previously unpaid coupons will also be paid
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold level, par; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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| Call option: | At par if each stock closes at or above 85% of its initial level on any monthly redemption determination date after four months
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| Initial levels: | $227.26 for Square, $64.41 for Blackstone and $2,163.04 for Booking
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| Coupon barrier levels: | $124.993 for Square, $35.426 for Blackstone and $1,189.672 for Booking; 55% of initial levels
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| Downside threshold levels: | $113.63 for Square, $32.205 for Blackstone and $1,081.52 for Booking; 50% of initial levels
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| Redemption threshold: | $193.171 for Square, $54.749 for Blackstone and $1,838.584 for Booking, 85% of initial levels
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| Pricing date: | Jan. 21
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| Settlement date: | Jan. 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61771EZX9
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