Published on 11/12/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 contingent income autocalls tied to three indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 12 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Nov. 4, 2021 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9% if each underlying index closes at or above its 70% coupon barrier on the observation 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 determination date after six months.
The payout at maturity will be par unless any index finishes below its 70% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are 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 assets: | Russell 2000 index, S&P 500 index and Euro Stoxx 50 index
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Amount: | $500,000
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Maturity: | Nov. 4, 2021
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Coupon: | 9% annualized, payable quarterly if each index closes at or above its 70% coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | If each index finishes at or above threshold level, 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 its initial level on any determination date after six months
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Initial levels: | 1,511.413 for Russell, 2,711.74 for S&P and 3,197.51 for Stoxx
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Threshold levels: | 1,057.9891 for Russell, 1,898.218 for S&P and 2,238.257 for Stoxx, 70% of initial levels
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Pricing date: | Oct. 31
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Settlement date: | Nov. 5
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Underwriter: | Morgan Stanley & Co. LLC
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Fees: | 0.7%
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Cusip: | 61768DGV1
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