Published on 9/15/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $14.33 million trigger callable contingent notes on indexes
By Marisa Wong
Los Angeles, Sept. 15 – Morgan Stanley Finance LLC priced $14.33 million of trigger callable contingent yield notes with daily coupon observation due June 12, 2025 linked to the worst performing of the S&P 500 index, Russell 2000 index and MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annualized rate of 8.7% if each index closes at or above its coupon barrier level, 70% of its initial level, on each trading day during that quarter.
The notes will be callable at par of $10 plus any contingent coupon due on any quarterly coupon payment date prior to maturity.
If the notes have not been called and each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon, if any. Otherwise, investors will lose 1% for every 1% decline of the least performing index.
Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Trigger callable contingent yield notes with daily coupon observation
|
| Underlying indexes: | S&P 500 index, Russell 2000 index and MSCI Emerging Markets index
|
| Amount: | $14,325,000
|
| Maturity: | June 12, 2025
|
| Coupon: | 8.7% per year, payable each quarter that each index closes at or above its coupon barrier on each trading day during that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus final coupon, if any, unless any index finishes below downside threshold, in which case 1% loss for every 1% decline of worst performing index
|
| Call option: | At par plus any coupon due on any quarterly coupon payment date prior to maturity
|
| Initial levels: | 4,493.28 for S&P, 2,249.129 for Russell, 1,299.97 for MSCI EM
|
| Coupon barriers: | 3,145.30 for S&P, 1,574.390 for Russell, 909.98 for MSCI EM; 70% of initial levels
|
| Downside thresholds: | 2,695.97 for S&P, 1,349.477 for Russell, 779.98 for MSCI EM; 60% of initial levels
|
| Pricing date: | Sept. 9
|
| Settlement date: | Sept. 14
|
| Agents: | Morgan Stanley & Co. LLC and UBS Financial Services Inc.
|
| Fees: | 1%
|
| Cusip: | 61773E478
|
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