Published on 2/21/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.87 million jump securities with autocallable feature on stocks
By Taylor Fox
New York, Feb. 22 – Morgan Stanley Finance LLC priced $1.87 million of 0% jump securities with autocallable feature due Feb. 15, 2024 linked to the worst performing of the common stocks of Bank of America Corp., Coca-Cola Co., Eli Lilly and Co. and Tesla, Inc., 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 30% if each stock closes at or above 85% of its initial level on any quarterly observation date.
At maturity, if all the stocks finish above 85% of their initial levels, the payout will be par plus 90%.
If the worst performing stock declines by more than 15% but not more than 45%, the payout will be par. If the worst performing stock finishes below its 55% downside threshold level, investors will be fully exposed to the decline of that stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying stocks: | Bank of America Corp., Coca-Cola Co., Eli Lilly and Co. and Tesla, Inc.
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| Amount: | $1,868,000
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| Maturity: | Feb. 15, 2024
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus an annual premium of 30% if each stock closes at or above 85% of its initial level on any quarterly observation date
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| Payout at maturity: | Par plus 90% if all the stocks finish above 85% of their initial levels; if the worst performing stock declines by more than 15% but not more than 45%, par; if the worst performing stock finishes below its downside threshold level, investors will be fully exposed to the decline of that stock
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| Initial levels: | $32.88 for Bank of America, $50.30 for Coca Cola, $202.58 for Eli Lilly and $811.66 for Tesla
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| Call threshold levels: | $27.948 for Bank of America, $42.755 for Coca Cola, $172.193 for Eli Lilly and $689.911 for Tesla; 85% of initial levels
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| Downside threshold levels: | $18.084 for Bank of America, $27.665 for Coca Cola, $111.419 for Eli Lilly and $446.413 for Tesla; 55% of initial levels
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| Pricing date: | Feb. 11
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| Settlement date: | Feb. 16
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4%
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| Cusip: | 61771E6R4
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