Published on 5/7/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.5 million contingent income autocalls on four stocks
By Wendy Van Sickle
Columbus, Ohio, May 7 – Morgan Stanley Finance LLC priced $2.5 million of contingent income autocallable securities due May 1, 2024 tied to the worst performing of the stocks of Amazon.com, Inc., Tesla, Inc., Netflix, Inc. and Zoom Video Communications, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 22.75% per year if each stock closes at or above its coupon barrier level, 50% of its initial level, on the observation date that period.
The notes will be automatically called at par if each stock closes at or above its initial level on any monthly call determination date after one year.
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 the final coupon. 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: | Amazon.com, Inc., Tesla, Inc., Netflix, Inc. and Zoom Video Communications, Inc.
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| Amount: | $2.5 million
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| Maturity: | May 1, 2024
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| Coupon: | 22.75% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date
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| 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 its initial level on any monthly call determination date after one year
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| Initial levels: | $3,334.69 for Amazon, $718.99 for Tesla, $549.57 for Netflix and $321.78 for Zoom
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| Coupon barriers: | $1,667.345 for Amazon, $359.495 for Tesla, $274.785 for Netflix and $160.89 for Zoom; 50% of initial levels
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| Downside threshold levels: | $1,667.345 for Amazon, $359.495 for Tesla, $274.785 for Netflix and $160.89 for Zoom; 50% of initial levels
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| Pricing date: | April 23
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| Settlement date: | April 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61771VWJ5
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