By Marisa Wong
Madison, Wis., Nov. 3 – Morgan Stanley priced $620,000 of contingent income autocallable securities due Oct. 31, 2029 with five-year initial non-call period linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year plus any previously unpaid contingent coupons for any prior observation dates if each index closes at or above its coupon barrier level, 80% of the initial level, on the determination date for that quarter.
Beginning five years after issuance, the notes will be automatically redeemed at par plus the contingent coupon plus any previously unpaid contingent coupons if both indexes close at or above their initial levels on any quarterly redemption determination date.
If the notes are not called and each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par, and investors will also receive the final contingent coupon and any previously unpaid contingent coupons if both indexes finish at or above their coupon barrier levels.
If the notes are not called and either index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000, Euro Stoxx 50
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| Amount: | $620,000
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| Maturity: | Oct. 31, 2029
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 8% per year plus any previously unpaid contingent coupons for any prior observation dates if each index closes at or above coupon barrier level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par and contingent coupons if each index also finishes at or above coupon barrier levels; if either index finishes below downside threshold, full exposure to decline of worst-performing index from initial level
|
| Call: | Beginning five years after issuance, notes will be automatically redeemed at par plus contingent coupon plus any previously unpaid contingent coupons if both indexes close at or above initial levels on any quarterly redemption determination date
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| Initial index levels: | 1,149.452 for Russell 2000 and 3,036.15 for Euro Stoxx 50
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| Coupon barrier levels: | 919.562 for Russell 2000 and 2,428.92 for Euro Stoxx 50; 80% of initial levels
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| Downside thresholds: | 574.726 for Russell 2000 and 1,518.075 for Euro Stoxx 50; 50% of initial levels
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| Pricing date: | Oct. 28
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61761JTV1
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