Published on 12/24/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.66 million jump securities with autocallable feature on indexes
By Taylor Fox
New York, Dec. 24 – Morgan Stanley Finance LLC priced $1.66 million of 0% jump securities with autocallable feature due Dec. 12, 2023 linked to the worst performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will be called at par plus an annual premium of 10.5% if each index closes at or above its initial level on a quarterly observation date after six months. The final premium is 31.5%.
If the notes are not called, meaning the worst performer has finished below its initial level, and the worst performing index declines no more than 30%, the payout will be par. If the worst performing index finishes below its 70% downside threshold level, investors will be fully exposed to the decline.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Jump securities with autocallable feature
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Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index and Russell 2000 index
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Amount: | $1,657,000
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Maturity: | Dec. 12, 2023
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Coupon: | 0%
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Price: | Par
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Call: | At par plus an annual premium of 10.5% if each index closes at or above its initial level on a quarterly observation date starting after six months
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Payout at maturity: | If not called because worst performer has decline from initial level and if it declines by no more than 30%, par; if the worst performing index finishes below its downside threshold level, investors will be fully exposed to the decline
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Initial levels: | 1,891.252 for Russell, 12,596.47 for Nasdaq, 30,069.79 for Dow
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Downside thresholds: | 1,323.876 for Russell, 8,817.529 for Nasdaq, 21,048.853 for Dow; 70% of initial levels
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Pricing date: | Dec. 7
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Settlement date: | Dec. 10
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.5%
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Cusip: | 61771ESR0
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