Morgan Stanley plans jump autocallables tied to Nasdaq, Russell, Dow

By Devika Patel

Knoxville, Tenn., July 8 – Morgan Stanley Finance LLC plans to price 0% jump securities with autocallable feature due Aug. 4, 2022 linked to the least performing of the Nasdaq-100 index, the Dow Jones industrial average and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Beginning Aug. 3, 2020, the notes will be automatically called at par plus a call premium if each index closes at or above 95% of its initial level on any annual valuation date. The call premium is expected to be at least 11.25% per year and will be set at pricing.

If each index finishes at or above 95% of its initial level, the payout at maturity will be at least $1,337.50 per $1,000 of notes. The exact payout will be set at pricing.

The payout will be par if either index finishes below 95% of its initial level but each index finishes at or above its downside threshold level, 70% of its initial level.

If either index finishes below its downside threshold level, investors will lose 1% for every 1% that the worst-performing index declines from its initial level.

Morgan Stanley & Co. LLC is the agent.

The notes (Cusip: 61769HJP1) will price on July 31 and settle on Aug. 5.

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