Published on 5/19/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.8 million callable contingent income securities on indexes
By Wendy Van Sickle
Columbus, Ohio, May 19 – Morgan Stanley Finance LLC sold $1.8 million of callable contingent income securities due May 1, 2026 tied to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at the rate of 7.25% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on the related determination date.
The notes will be callable at par plus the coupon on any quarterly observation date.
The payout at maturity will be par plus any coupon due unless any index finishes below its70% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
|
| Amount: | $1.8 million
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| Maturity: | May 1, 2026
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| Coupon: | 7.25% per year, payable quarterly if each index closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
|
| Call option: | At par plus coupon on any quarterly observation date
|
| Payout at maturity: | Par plus any coupon due unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
|
| Initial levels: | 13,901.62 for Nasdaq, 2,304.158 for Russell, 4,183.18 for S&P
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| Coupon threshold levels: | 10,426.415 for Nasdaq, 1,728.119 for Russell, 3,137.385 for S&P; or 75% of initial levels
|
| Downside threshold levels: | 9,731.134 for Nasdaq, 1,4612.911 for Russell, 2,928.226 for S&P; or 70% of initial levels
|
| Pricing date: | April 28
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| Settlement date: | April 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.75%
|
| Cusip: | 61771VXB1
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