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Published on 2/21/2021 in the Prospect News Structured Products Daily.

New Issue: Morgan Stanley sells $900,000 contingent income autocalls on Airbnb

By Taylor Fox

New York, Feb. 22 – Morgan Stanley Finance LLC priced $900,000 of contingent income autocallable securities due Aug. 2, 2022 linked to the common stock of Airbnb, Inc., 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 annual rate of 14% if the stock closes at or above its coupon barrier, 50% of its initial level, on the determination date for that period.

The notes will be called at par plus the contingent coupon if the stock closes above 80% of its initial level on any monthly redemption date after three months.

The payout at maturity will be par unless the stock finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the stock.

Morgan Stanley & Co. LLC is the agent.

Issuer:Morgan Stanley Finance LLC
Guarantor:Morgan Stanley
Issue:Contingent income autocallable securities
Underlying stock:Airbnb, Inc.
Amount:$900,000
Maturity:Aug. 2, 2022
Coupon:14% per year, payable each month that stock closes at or above coupon barrier on observation date for that period
Price:Par
Payout at maturity:If final share price is greater than or equal to downside threshold level, par; otherwise, full exposure to stock’s decline
Call:Par plus the contingent coupon if the stock closes above 80% of its initial level on any monthly redemption date after three months
Initial share price:$187.37
Downside threshold level:$93.685, 50% of initial share price
Call level:$149.896, 80% of initial share price
Pricing date:Jan. 28
Settlement date:Feb. 2
Agent:Morgan Stanley & Co. LLC
Fees:1.85%
Cusip:61771EP85

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