Published on 3/23/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.35 million callable contingent income notes on indexes, ETF
By Taylor Fox
New York, March 23 – Morgan Stanley Finance LLC priced $1.35 million of callable contingent income securities due Sept. 15, 2022 linked to the S&P 500 index, the iShares Russell 2000 Value ETF and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Monthly, the notes will pay a contingent coupon at the rate of 10.25% per year if each asset closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If the lowest-performing asset finishes at or above its knock-in level, 70% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the lowest-performing asset from its initial level.
The notes will be callable at par on any quarterly redemption date.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying assets: | S&P 500 index, the iShares Russell 2000 Value ETF and the Nasdaq-100 index
|
| Amount: | $1,351,000
|
| Maturity: | Sept. 15, 2022
|
| Coupon: | 10.25% per year, payable monthly if each asset closes at or above coupon barrier level on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each asset finishes at or above knock-in level, par; otherwise, full exposure to decline of lowest-performing asset from its initial level
|
| Call option: | At par on any quarterly redemption date
|
| Initial levels: | 3,898.81 for S&P, 12,752.07 for Nasdaq and $165.21 for ETF
|
| Coupon barriers: | 2,729.167 for S&P, 8,926.449 for Nasdaq and $115.647 for ETF, 70% of initial levels
|
| Knock-in levels: | 2,729.167 for S&P, 8,926.449 for Nasdaq and $115.647 for ETF, 70% of initial levels
|
| Pricing date: | March 10
|
| Settlement date: | March 15
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.1%
|
| Cusip: | 61771VHA1
|
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