By Wendy Van Sickle
Columbus, Ohio, Dec. 13 – Morgan Stanley Finance LLC priced $1.42 million of 0% contingent buffer equity notes due Dec. 27, 2018 linked to the SPDR S&P Regional Banking exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
A knock-out event occurs if the final share price is less than the initial share price by more than 15%.
If a knock-out event has not occurred, the payout at maturity will be par plus the greater of the 0% contingent minimum return and the ETF return, capped at 22.6%.
If a knock-out event has occurred, investors will lose 1% for every 1% share price decline.
The final share price will be the average of the closing share prices on the five trading days ending Dec. 21, 2018.
Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent buffer equity notes
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| Underlying ETF: | SPDR S&P Regional Banking
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| Amount: | $1.42 million
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| Maturity: | Dec. 27, 2018
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the ETF finishes above its initial level, par plus return, capped at 22.6%; if ETF falls by up to 15%, par; otherwise, 1% loss for each 1% ETF decline below the initial level
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| Initial price: | $59.29
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| Knock-out level: | $50.397, 85% of initial price
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| Final price: | Average of the closing share prices on the five trading days ending Dec. 21, 2018
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| Pricing date: | Dec. 8
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| Settlement date: | Dec. 13
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| Agent: | Morgan Stanley & Co. LLC with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents
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| Fees: | 1%
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| Cusip: | 61761J4F3
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