New Issue: Morgan Stanley sells $1 million callable contingent income notes on indexes

By Wendy Van Sickle

Columbus, Ohio, Nov. 28 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due Nov. 27, 2023 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at an annualized rate if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that quarter. The rate is 6% initially and steps up to 6.5% on Nov. 26, 2019; to 7.5% on Nov. 27, 2020; to 8.5% on Nov. 26, 2021; and to 9.5% on Nov. 25, 2022.

If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par.

If any index finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing index from its initial level.

After one year, the notes will be callable quarterly at par.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley Finance LLC
Guarantor:	Morgan Stanley
Issue:	Callable contingent income securities
Underlying indexes:	Nasdaq-100 index, Russell 2000 index, and Dow Jones industrial average
Amount:	$1 million
Maturity:	Nov. 27, 2023
Coupon:	Payable quarterly if each index closes at or above coupon barrier level on observation date; annualized rate is rate is 6% initially and steps up to 6.5% on Nov. 26, 2019; to 7.5% on Nov. 27, 2020; to 8.5% on Nov. 26, 2021; and to 9.5% on Nov. 25, 2022
Price:	Par
Payout at maturity:	Par if each index finishes at or above downside threshold; if any index finishes below downside threshold, full exposure to decline of least-performing index from its initial level
Call option:	After one year, notes are callable at par quarterly
Initial levels:	6,575.663 for Nasdaq, 1,488.279 for Russell, 24,464.69 for Dow
Coupon barriers:	4,602.964 for Nasdaq, 1,041.795 for Russell, 17,125.283 for Dow; 70% of initial levels
Downside thresholds:	3,945.398 for Nasdaq, 892.967 for Russell, 14,678.814 Dow; 60% of initial levels
Pricing date:	Nov. 21
Settlement date:	Nov. 27
Agent:	Morgan Stanley & Co. LLC
Fees:	4.75%
Cusip:	61768DRH0

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