Published on 3/8/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.82 million 6% contingent income autocalls tied to S&P, Russell, Dow
By Wendy Van Sickle
Columbus, Ohio, March 8 – Morgan Stanley Finance LLC priced $1.82 million of contingent income autocallable securities due Jan. 31, 2033 linked to the least performing of the Dow Jones Industrial Average, the S&P 500 index and the Russell 2000 index according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 6% if each index closes at or above 75% coupon barrier on determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any call review date after one year.
The payout at maturity will be par unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes will be guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000, S&P 500, Dow Jones Industrial Average
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| Amount: | $1,821,000
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| Maturity: | Jan. 31, 2033
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| Coupon: | 6%, payable quarterly if each index closes at or above 60% coupon barrier on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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| Call: | At par if each index closes at or above initial level on any quarterly call date after one year
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| Initial levels: | 2,713.83 for S&P, 1,512.446 for Russell, 25,029.20 for Dow
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| Coupon barriers: | 2,035.373 for S&P, 1,134.335 for Russell, 18,771.90 for Dow; 75% of initial levels
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| Downside thresholds: | 1,628.298 for S&P, 907.468 for Russell, 15,017.52 for Dow; 60% of initial levels
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| Pricing date: | Feb. 28
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| Settlement date: | March 5
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 4.125%
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| Cusip: | 61768CE52
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