New Issue: Morgan Stanley prices $6.83 million airbag performance notes on Energy Select fund

By Marisa Wong

Madison, Wis., Dec. 31 – Morgan Stanley priced $6.83 million of 0% airbag performance securities due Dec. 31, 2019 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 120% of any fund gain. If the fund falls by up to 20%, the payout will be par. If the fund falls by more than 20%, investors will receive a number of shares equal to $1,000 divided by the conversion price, which is 80% of the initial price.

Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is the dealer.

Issuer:	Morgan Stanley
Issue:	Airbag performance securities
Underlying fund:	Energy Select Sector SPDR fund
Amount:	$6,834,000
Maturity:	Dec. 31, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 120% of any fund gain; if fund falls by up to 20%, par; otherwise, 15.6031 fund shares
Initial price:	$80.11
Conversion price:	$64.09, 80% of initial price
Pricing date:	Dec. 26
Settlement date:	Dec. 31
Agent:	Morgan Stanley & Co. LLC
Dealer:	UBS Financial Services Inc.
Fees:	3.5%
Cusip:	61764M414

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