Published on 9/9/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $6.93 million contingent income autocallables on financial stocks
By William Gullotti
Buffalo, N.Y., Sept. 9 – Morgan Stanley Finance LLC priced $6.93 million of contingent income autocallable securities due Aug. 15, 2024 linked to the shares of Bank of America Corp., Goldman Sachs Group, Inc., Charles Schwab Corp. and Wells Fargo & 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 monthly coupon at an annual rate of 8.05% if each underlying stock closes at or above its 65% coupon barrier on the corresponding observation date.
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 six months.
The payout at maturity will be par plus the final coupon unless any underlying stock finishes below its 65% 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
|
| Issue: | Contingent income autocallable securities
|
| Guarantor: | Morgan Stanley
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| Underlying stocks: | Bank of America Corp., Goldman Sachs Group, Inc., Charles Schwab Corp., Wells Fargo & Co.
|
| Amount: | $6,925,000
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| Maturity: | Aug. 15, 2024
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| Coupon: | 8.05% annualized, payable monthly if each stock closes at or above coupon barrier on relevant review date
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above downside threshold, par plus final coupon; 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 initial level on any monthly call date after six months
|
| Initial levels: | $41.43 for BofA, $407.97 for GS, $74.53 for Schwab, $49.63 for Wells Fargo
|
| Coupon barrier levels: | $26.93 for BofA, $265.181 for GS, $48.445 for Schwab, $32.26 for Wells Fargo; 65% of initial levels
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| Downside thresholds: | $26.93 for BofA, $265.181 for GS, $48.445 for Schwab, $32.26 for Wells Fargo; 65% of initial levels
|
| Pricing date: | Aug. 10
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| Settlement date: | Aug. 13
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61773FLK7
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