Published on 9/9/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.5 million callable contingent income securities on indexes, ETF
By William Gullotti
Buffalo, N.Y., Sept. 9 – Morgan Stanley Finance LLC sold $2.5 million of callable contingent income securities due Aug. 13, 2026 tied to the worst performing of the iShares MSCI Emerging Markets ETF, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Quarterly, the notes will pay a contingent coupon at the rate of 8.5% per year if each underlier closes at or above its coupon threshold level, 70% of its initial level, on every trading day during the observation period.
The notes will be callable at par on any quarterly observation date.
The payout at maturity will be par plus any final coupon due unless any underlier finishes below its 65% downside threshold, in which case investors will be fully exposed to the worst performer’s decline from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying assets: | iShares MSCI Emerging Markets ETF, Nasdaq-100 index, Russell 2000 index
|
| Amount: | $2,500,000
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| Maturity: | Aug. 13, 2026
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| Coupon: | 8.5% per year, payable quarterly if each underlier closes at or above its coupon threshold level on every trading day during the observation period
|
| Price: | Par
|
| Payout at maturity: | Par plus any final coupon due unless any underlier finishes below its downside threshold, in which case investors will be fully exposed to worst performer’s decline from its initial level
|
| Call option: | At par on any quarterly observation date
|
| Initial levels: | $52.11 for ETF, 2,234.808 for Russell, 15,133.11 for Nasdaq
|
| Coupon threshold levels: | $36.477 for ETF, 1,564.366 for Russell, 10,593.177 for Nasdaq; 70% of initial levels
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| Downside threshold levels: | $33.872 for ETF, 1,452.625 for Russell, 9,836.522 for Nasdaq; 65% of initial levels
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| Strike date: | Aug. 9
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| Pricing date: | Aug. 10
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| Settlement date: | Aug. 13
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1%
|
| Cusip: | 61773FQJ5
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