Published on 12/8/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.1 million contingent income autocalls on three stocks
Chicago, Dec. 9 – Morgan Stanley Finance LLC priced $1.1 million of contingent income autocallable securities due Nov. 26, 2024 linked to the worst performing of the common stocks of CenturyLink, Inc., Zscaler, Inc. and Abiomed, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its downside threshold level, 60% of its initial share price, on a monthly observation date, the notes will pay a contingent coupon that month at an annualized rate of 20%.
Beginning Feb. 26, 2020, the notes will be called at par plus the contingent coupon if each stock closes at or above 90% of its initial share price on any monthly determination date.
If each stock’s final share price is greater than or equal to its 50% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
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: | CenturyLink, Inc., Zscaler, Inc. and Abiomed, Inc.
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| Amount: | $1,104,000
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| Maturity: | Nov. 26, 2024
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| Coupon: | 20% per year, payable monthly if each stock closes at or above coupon threshold level on observation date for that month; includes previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If each stock’s final share price is greater than or equal to downside threshold level, par plus final contingent coupon and previously unpaid coupons; otherwise, 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | Beginning Feb. 26, 2020, at par plus contingent monthly coupon if each stock closes at or above 90% of its initial share price on any monthly determination date; coupon includes previously unpaid coupons
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| Initial share prices: | $14.85 for CenturyLink, $45.42 for Zscaler, $186.66 for Abiomed
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| Coupon levels: | $8.91 for CenturyLink, $27.252 for Zscaler, $111.996 for Abiomed; 60% of initial share price
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| Downside thresholds: | $7.425 for CenturyLink, $22.71 for Zscaler, $93.33 for Abiomed; 50% of initial share price
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| Pricing date: | Nov. 21
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| Settlement date: | Nov. 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61769HR72
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