Published on 12/28/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., Dec. 28 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Dec. 29, 2023 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones Industrial Average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.5% 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 60% 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
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying assets: | Russell 2000 index, Nasdaq-100 index and Dow Jones Industrial Average
|
| Amount: | $1 million
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| Maturity: | Dec. 29, 2023
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| Coupon: | 10.5% annualized, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above threshold level, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call: | At par if each index closes at or above its initial level on any determination date beginning June 26, 2019
|
| Initial levels: | 1,329.811 for Russell, 6,262.767 for Nasdaq and 22,878.45 for Dow
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| Coupon barriers: | 930.868 for Russell, 4,383.937 for Nasdaq and 16,014.915 for Dow, 70% of initial levels
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| Threshold levels: | 797.887 for Russell, 3,757.660 for Nasdaq and 13,727.07 for Dow, 60% of initial levels
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| Pricing date: | Dec. 26
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| Settlement date: | Dec. 31
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| Underwriter: | Morgan Stanley & Co. LLC
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| Fees: | 1%
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| Cusip: | 61768DVF9
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