Published on 8/27/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $14.96 million contingent income autocallable securities on travel-stock basket
By Wendy Van Sickle
Columbus, Ohio, Aug. 27 – Morgan Stanley Finance LLC priced $14.96 million of contingent income autocallable securities due May 29, 2024 linked to an equally weighted basket of the common stocks of American Airlines Group Inc., United Airlines Holdings, Inc., Norwegian Cruise Line Holdings Ltd. and Carnival Corp., according to a 424B2 filed with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 10.5% if the basket closes at or above its 70% coupon barrier on the observation date for that period.
The notes will be called at par plus the coupon if the basket closes at or above its initial level on any monthly review date after six months.
The payout at maturity will be par plus any coupon due unless the basket finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the basket.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | American Airlines Group Inc., United Airlines Holdings, Inc., Norwegian Cruise Line Holdings Ltd. and Carnival Corp., equal weights
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| Amount: | $14,964,000
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| Maturity: | May 29, 2024
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| Coupon: | 10.5% annualized, payable monthly if the basket closes at or above coupon barrier on review date for that period
|
| Price: | Par
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| Payout at maturity: | If the basket finishes at or above downside threshold, par plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing stock
|
| Call: | At par plus coupon if the basket closes at or above its initial level on any monthly call date after six months
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| Initial levels: | $19.11 for American, $45.53 for United, $24.64 for Norwegian, $22.83 for Carnival
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| Coupon barrier levels: | 70% of initial levels
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| Downside threshold levels: | 60% of initial levels
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| Pricing date: | Aug. 23
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| Settlement date: | Aug. 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.3%
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| Cusip: | 61773FNX7
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