Published on 3/28/2022 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3 million contingent income autocallable securities on four stocks
By William Gullotti
Buffalo, N.Y., March 28 – Morgan Stanley Finance LLC priced $3 million of contingent income autocallable securities due May 2, 2024 linked to the worst performing of the shares of Amazon.com, Inc., Tesla, Inc., Netflix, Inc. and the class A common stock of Zoom Video Communications, Inc., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 24.75% if each underlying stock closes at or above its 50% coupon barrier on the observation date for that month.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any monthly review date after three 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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| Underlying stocks: | Amazon.com, Inc., Tesla, Inc., Netflix, Inc., Zoom Video Communications, Inc.
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| Amount: | $3,000,000
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| Maturity: | May 2, 2024
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| Coupon: | 24.75% annualized, payable monthly if each stock closes at or above coupon barrier on that corresponding review date
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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 initial level on any monthly call date after three months
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| Initial levels: | $3,409 for Amazon, $738.20 for Tesla, $510.30 for Netflix, $336.42 for Zoom
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| Trigger levels: | $1,704.50 for Amazon, $369.10 for Tesla, $255.15 for Netflix, $168.21 for Zoom; 50% of initial levels
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| Pricing date: | April 27, 2021
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| Settlement date: | April 30, 2021
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61771VB74
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