Published on 8/30/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 of contingent income autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 30 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due March 3, 2020 linked to the worst performing of the Dow Jones Industrial Average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a monthly coupon at an annualized rate of 8.6% if each index closes above its initial level on the observation date.
After six months, the notes will be automatically called at par if all three indexes close at or above their initial levels on any quarterly observation date.
The payout at maturity will be par plus any coupon due unless any underlying index finishes below its 70% downside threshold, 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: | Autocallable contingent income securities
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| Underlying indexes: | Dow Jones Industrial Average, Nasdaq-100 and Russell 2000
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| Amount: | $500,000
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| Maturity: | March 3, 2020
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| Coupon: | 8.6% annualized, payable monthly if each index closes at or above downside threshold on observation date
|
| Price: | Par
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| Payout at maturity: | If all three indexes finish above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index
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| Call: | After six months, automatically at par if all three indexes close at or above initial level on any quarterly call date
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| Initial levels: | 26,049.64 for Dow, 7,559.133 for Nasdaq and 1,728.406 for Russell
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| Downside thresholds: | 18,234.78 for Dow, 5,291.393 for Nasdaq and 1,209.884 for Russell; 70% of initial levels
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| Pricing date: | Aug. 27
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| Settlement date: | Aug. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
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| Cusip: | 61768DCY9
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