Published on 7/20/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $250,000 contingent income autocallable securities on three stocks
By Wendy Van Sickle
Columbus, Ohio, July 20 – Morgan Stanley Finance LLC priced $250,000 of contingent income autocallable securities due July 12, 2023 linked to the shares of Airbnb, Inc., Booking Holdings Inc. and Walt Disney Co., 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 10% if each underlying stock closes at or above its 55% coupon barrier on the corresponding observation date, including previously unpaid coupons.
The notes will be called at par plus the coupon if each stock closes at or above its call level on any quarterly review date. The call level starts at 100% of the initial level and decreases by 2% each quarter.
The payout at maturity will be par plus the final coupon, including any previously unpaid coupons, if all stocks finish at or above their 55% downside thresholds.
Otherwise, investors will be fully exposed to the losses of the worst performing stock from initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Issue: | Contingent income autocallable securities
|
| Guarantor: | Morgan Stanley
|
| Underlying stocks: | Airbnb, Inc., Booking Holdings Inc., Walt Disney Co.
|
| Amount: | $250,000
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| Maturity: | July 12, 2023
|
| Coupon: | 10% annualized, payable quarterly if each stock closes at or above its coupon barrier on the corresponding review date; any previously unpaid coupons will also be paid
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above downside threshold, par plus final coupon including all previously unpaid coupons; 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 call level on any quarterly call date; call level starts at 100% and decreases by 2% each quarter
|
| Initial levels: | $143.72 for Airbnb, $2,166.77 for Booking, $172.82 for Disney
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| Coupon barrier levels: | $79.046 for Airbnb, $1,191.724 for Booking, $95.051 for Disney; 55% of initial levels
|
| Downside thresholds: | $79.046 for Airbnb, $1,191.724 for Booking, $95.051 for Disney; 55% of initial levels
|
| Pricing date: | July 8
|
| Settlement date: | July 13
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.6%
|
| Cusip: | 61773FFW8
|
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