Published on 5/4/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $7.56 million contingent income autocallables on Russell, Stoxx
By Susanna Moon
Chicago, May 4 – Morgan Stanley Finance LLC priced $7.56 million of contingent income autocallable securities due April 29, 2031 linked to the worse performing of the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The coupon will be fixed at 8% for the first two years. After that, the notes will pay a contingent quarterly coupon at an annual rate of 8% if each index closes at or above its initial level on the determination 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 monthly determination date after two years.
The payout at maturity will be par plus any contingent coupon unless either index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Euro Stoxx 50 and Russell 2000
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| Amount: | $7,563,000
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| Maturity: | April 29, 2031
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| Coupon: | 8%, payable quarterly, fixed for two years; after that, 8% annualized for each quarter that indexes close at or above initial level on determination date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus any contingent coupon unless either index finishes below trigger level, in which case full exposure to any losses of the worse performing index
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| Call: | At par plus the contingent coupon if each index closes at or above initial level on any determination date beginning April 29, 2018
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| Initial levels: | 3,121.29 for Stoxx, 1,150.728 for Russell
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| Trigger levels: | 1,560.645 for Stoxx, 575.364 for Russell; 50% of initial levels
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| Pricing date: | April 26
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| Settlement date: | April 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61766BAM3
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