Published on 9/16/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.09 million trigger autocallable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 16 – Morgan Stanley Finance LLC priced $3.09 million of trigger autocallable contingent yield notes due Sept. 19, 2019 linked to the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning Sept. 14, 2017.
The payout at maturity will be par plus the contingent coupon, if any, unless either index finishes below the 50% downside threshold level, in which case investors will lose 1% for each 1% decline of the worse performing index.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Euro Stoxx 50 and S&P 500
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| Amount: | $3.09 million
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| Maturity: | Sept. 19, 2019
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| Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier on observation date
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| Price: | Par of $10
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| Call: | Beginning Sept. 14, 2017, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
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| Payout at maturity: | Par unless index closes below 50% downside threshold level, in which case will lose 1% for each 1% decline of the worse performing index
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| Initial levels: | 2,964.90 for Stoxx, 2,125.77 for S&P
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| Coupon barrier: | 2,075.43 for Stoxx, 1,488.04 for S&P, 70% of initial levels
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| Downside threshold: | 1,482.45 for Stoxx, 1,062.89 for S&P, 50% of initial levels
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| Pricing date: | Sept. 14
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| Settlement date: | Sept. 19
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61766F219
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