Published on 8/18/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $7 million step-down trigger autocalls on Nasdaq, Russell
By William Gullotti
Buffalo, N.Y., Aug. 18 – Morgan Stanley Finance LLC priced $7 million of 0% step-down trigger autocallable notes due May 15, 2026 linked to the least performing of the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
After one year, the notes will be automatically called at par of $10 plus 7.8% per year if each index closes at or above its initial level on any annual observation date.
At maturity, if the indexes finish above 75% of their initial levels, investors will receive par plus the final redemption payment of 39%. If the notes are not subject to an automatic call and finish greater than or equal to the downside threshold, 65% of its initial level, payout at maturity will be par. If any underlying falls below the downside threshold, investors will be fully exposed to the decline of the worst performer.
UBS Financial Services Inc. and Morgan Stanley are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Step-down trigger autocallable notes
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index
|
| Amount: | $7 million
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| Maturity: | May 15, 2026
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Call: | After one year, at par plus 7.8% per year if each asset closes at or above its initial level on any annual observation date except the final one
|
| Payout at maturity: | Par plus 39% if both indexes finish above 75% of initial levels; par if worst-performing index finishes at or above the downside threshold and below the final redemption level; otherwise, full exposure to decline of the worst performer
|
| Initial levels: | 13,001.63 for Nasdaq, 2,135.139 for Russell
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| Downside threshold levels: | 8,451.06 for Nasdaq, 1,387.84 for Russell; 65% of initial levels
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| Final threshold levels: | 9,751.22 for Nasdaq, 1,601.354 for Russell; 75% of initial levels
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| Pricing date: | May 12
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| Settlement date: | May 17
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| Agents: | UBS Financial Services Inc. and Morgan Stanley
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| Fees: | None
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| Cusip: | 61772X717
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