Published on 10/12/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.13 million contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., Oct. 12 – Morgan Stanley Finance LLC priced $1.13 million of contingent income autocallable securities due Oct. 13, 2023 linked to the worse performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones Industrial Average, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 7.5% if each index closes at or above its coupon threshold, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any review date after a year.
The payout at maturity will be par unless either underlying index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and Dow Jones Industrial Average
|
| Amount: | $1,125,000
|
| Maturity: | Oct. 13, 2023
|
| Coupon: | 7.5%, payable quarterly if each index closes at or above coupon threshold on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above 50% downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
|
| Call: | At par if each index closes at or above its initial level on any quarterly call date after one year
|
| Initial levels: | 1,575.412 for Russell, 7,044.496 for Nasdaq, 25,598.74 for Dow
|
| Coupon thresholds: | 1,102.788 for Russell, 4,931.147 for Nasdaq, 17,919.118 for Dow, 70% of initial levels
|
| Downside thresholds: | 787.706 for Russell, 3,522.248 for Nasdaq, 12,799.37 for Dow, 50% of initial levels
|
| Pricing date: | Oct. 10
|
| Settlement date: | Oct. 15
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1%
|
| Cusip: | 61768DHF5
|
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