Morgan Stanley plans autocallable jump notes linked to Russell, Dow

By Angela McDaniels

Tacoma, Wash., Oct. 4 – Morgan Stanley Finance LLC plans to price 0% jump securities with autocallable feature due Oct. 13, 2022 linked to the lesser performing of the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a call premium of 10% per year if each index closes at or above its redemption threshold level on either annual determination date. For each index, the redemption threshold level is 100% of its initial level for Oct. 13, 2020 and 95% of its initial level for Oct. 7, 2021.

If the notes have not previously been redeemed and the final level of each index is greater than or equal to 90% of its initial level, the payout at maturity will be par plus 30%.

If the final level of either index is less than 90% of its initial level but the final level of each index is greater than or equal to its downside threshold level, 70% of its initial level, the payout will be par.

If the final level of either index is less than its downside threshold level, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.

The notes will be guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price Oct. 7.

The Cusip number is 61769HC37.

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