Published on 2/5/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.16 million contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., Feb. 5 – Morgan Stanley Finance LLC priced $1.16 million of contingent income autocallable securities due Feb. 4, 2027 linked to the worst performing of the Euro Stoxx Select Dividend 30 index, the Nasdaq-100 index and the MSCI Emerging Markets index, according to an FWP filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent quarterly coupon at a rate of 13.08% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on the determination date for that quarter.
Beginning May 2, the notes will be automatically called at par plus the contingent coupon if the closing level of each index is greater than or equal to 95% of its initial level on any quarterly redemption date.
If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be exposed to the losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying assets: | Euro Stoxx Select Dividend 30 index, Nasdaq-100 index and MSCI Emerging Markets index
|
| Amount: | $1,155,000
|
| Maturity: | Feb. 4, 2027
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| Coupon: | 13.08% annualized, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above threshold level, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call: | Beginning May 2, at par if each index closes at or above its 95% of initial level on any quarterly determination date
|
| Initial levels: | 1,881.11 for Stoxx, 6,875.518 for Nasdaq, 1,050.20 for EM
|
| Coupon barriers: | 1,410.833 for Stoxx, 5,156.639 for Nasdaq, 787.65 for EM, 75% of initial levels
|
| Threshold levels: | 1,128.666 for Stoxx, 4,125.311 for Nasdaq and 630.12 for EM, 60% of initial levels
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| Pricing date: | Feb. 1
|
| Settlement date: | Feb. 6
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 0.5%
|
| Cusip: | 61768DJ71
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