Published on 9/17/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $563,000 contingent income securities on two ETFs
By William Gullotti
Buffalo, N.Y., Sept. 17 – Morgan Stanley Finance LLC priced $563,000 of contingent income securities due June 29, 2023 tied to the performance of the Energy Select Sector SPDR Fund and the VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 8% per year if each ETF closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If each ETF finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
The notes are guaranteed by Morgan Stanley.
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 securities
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Underlying funds: | Energy Select Sector SPDR Fund, VanEck Vectors Gold Miners ETF
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Amount: | $563,000
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Maturity: | June 29, 2023
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Coupon: | 8% per year, payable quarterly if each ETF closes at or above coupon barrier level on observation date that period
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Price: | Par
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Payout at maturity: | If each ETF finishes at or above the downside threshold, par plus the final coupon; otherwise, full exposure to decline of lowest-performing ETF from its initial level
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Initial levels: | $55.34 for SPDR, $34.36 for VanEck
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Coupon barriers: | $38.738 for SPDR, $24.052 for VanEck; 70% of initial levels
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Downside threshold levels: | $38.738 for SPDR, $24.052 for VanEck; 70% of initial levels
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Pricing date: | June 25
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Settlement date: | June 30
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.25%
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Cusip: | 61771V5F3
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