By Tali Rackner
Minneapolis, Jan. 29 – Morgan Stanley Finance LLC priced $2.35 million of 0% contingent buffer equity notes due Feb. 6, 2019 linked to the SPDR S&P Regional Banking exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
A knock-out event will occur if the fund finishes below the 85% knock-out level.
If a knock-out event has not occurred, the payout at maturity will be par plus the greater of the contingent minimum return of 0% and the fund return, up to a maximum payment of par plus 21.8%.
If a knock-out event has occurred, the payout will be par plus the fund return, with full exposure to any losses.
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: | $2.35 million
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| Maturity: | Feb. 6 2019
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| Coupon: | 0%
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| Price: | Par of $1,000
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| Payout at maturity: | If fund finishes at or above 85% knock-out level, par plus greater of 0% and any gain, capped at 21.8%; otherwise, 1% loss for each 1% decline
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| Initial price: | $63.03
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| Knock-out level: | $53.576, 85% of initial price
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| Pricing date: | Jan. 19
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| Settlement date: | Jan. 24
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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: | 61768CYR2
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