Published on 12/16/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $700,000 contingent income buffered autocallables tied to indexes
By Devika Patel
Knoxville, Tenn., Dec. 16 – Morgan Stanley Finance LLC priced $700,000 of contingent income buffered autocallable securities due Dec. 9, 2024 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 are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at an annualized rate of 5.25% if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that month.
Beginning on Dec. 4, 2020, the notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly early redemption determination date.
If the final level of each index is greater than or equal to 75% of its initial level, the payout at maturity will be par plus the last contingent coupon. Otherwise, investors will lose 1% for every 1% that the worst-performing index declines beyond 25%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income buffered autocallable securities
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| Underlying indexes: | Russell 2000, S&P 500 and Dow Jones industrial average
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| Amount: | $700,000
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| Maturity: | Dec. 9, 2024
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| Coupon: | 5.25% annual rate if each index closes at or above coupon barrier level on monthly determination date
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| Price: | Par
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| Call: | At par if each index closes at or above its initial level on any quarterly early redemption determination date beginning on Dec. 4, 2020
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| Payout at maturity: | If final level of each index is greater than or equal to 75% of initial level, par plus last contingent coupon; otherwise, 1% loss for every 1% that worst-performing index declines beyond 25%
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| Initial index levels: | 1,613.896 for Russell, 3,112.76 for S&P and 27,649.78 for Dow
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| Coupon barrier levels: | 1,210.422 for Russell, 2,334.57 for S&P and 20,737.335 for Dow; 75% of initial levels
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| Pricing date: | Dec. 4
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| Settlement date: | Dec. 9
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61769HN35
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