Published on 12/19/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.55 million jump securities with autocallable feature on indexes
By Taylor Fox
New York, Dec. 21 – Morgan Stanley Finance LLC priced $2.55 million of 0% jump securities with autocallable feature due Dec. 16, 2025 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 11.25% if each index closes at or above its initial level on a semiannual observation date starting after one year.
At maturity, if the notes have not been called and each index finishes above its initial level, the payout will be par plus 56.25%.
If the worst performing index declines by up to 25%, the payout will be par. If the worst performing index finishes below its 75% downside threshold level, investors will be fully exposed to the decline of that index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Jump securities with autocallable feature
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| Underlying indexes: | Russell 2000 index, S&P 500 index and Dow Jones industrial average
|
| Amount: | $2,551,000
|
| Maturity: | Dec. 16, 2025
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | At par plus an annual premium of 11.25% if each index closes at or above its initial level on a semiannual observation date after one year
|
| Payout at maturity: | Par plus 56.25% if all indexes finish above initial levels; if worst performing index declines by no more than 25%, par; if worst performing index finishes below its downside threshold level, investors will be fully exposed to that index’s decline
|
| Initial levels: | 30,046.37 for Dow, 3,663.46 for S&P, 1,911.697 for Russell
|
| Downside thresholds: | 22,534.778 for Dow, 2,747.595 for S&P, 1,433.773 for Russell; 75% of initial levels
|
| Pricing date: | Dec. 11
|
| Settlement date: | Dec. 16
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | None
|
| Cusip: | 61771ESQ2
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