By Marisa Wong
Madison, Wis., April 29 - Morgan Stanley priced $1.59 million of contingent income autocallable step-up securities due April 28, 2028 linked to the worse performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon if each underlying index closes at or above its respective coupon barrier level, 75% of the initial level, on the observation date for that month. The annual rate is 9.5% for the first five years and will step up to 11% on April 28, 2018 and to 15% on April 28, 2023.
The notes will be redeemed at par plus the contingent coupon if both indexes close at or above their respective initial levels on any quarterly redemption determination date beginning April 28, 2018.
If each index finishes at or above the downside threshold level, 50% of the initial index level, the payout at maturity will be par and, if each index also finishes above the coupon barrier level, the contingent monthly coupon.
Otherwise, investors will be fully exposed to any losses of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable step-up securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $1,591,000
|
| Maturity: | April 28, 2028
|
| Coupon: | 9.5% initially, steps up to 11% on April 28, 2018 and to 15% on April 28, 2023; payable monthly if each index closes at or above coupon barrier level on observation date for that month; otherwise, no coupon for that month
|
| Price: | Par
|
| Payout at maturity: | If each index closes at or above downside threshold level, par plus final coupon, if any; full exposure to decline of worse performing index if either index finishes below downside threshold level
|
| Initial index levels: | 940.28 for Russell and 2,704.41 for Euro Stoxx
|
| Coupon barrier levels: | 705.21 for Russell and 2,028.308 for Euro Stoxx; 75% of initial levels
|
| Downside thresholds: | 470.14 for Russell and 1,352.205 for Euro Stoxx; 50% of initial levels
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JEV7
|
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