By Wendy Van Sickle
Columbus, Ohio, Oct. 14 – Morgan Stanley priced $3.84 million of 5.5% fixed-coupon autocallable securities due Oct. 16, 2018 linked to the worst performing of the S&P 500 index, the Euro Stoxx 50 index and the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
After six months, the notes will be called at par if each index closes at or above the redemption threshold level on any quarterly determination date. The redemption threshold is 100% of the initial level on the first redemption date of April 7, 2017, and steps down by 2% a quarter thereafter.
If the final level of each index is at least 65% of its initial level, the payout at maturity will be par plus the coupon.
If any index finishes below 65%, investors will be exposed to the losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
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| Issue: | Worst-of fixed-coupon autocallable securities
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| Underlying indexes: | S&P 500, Euro Stoxx 50 and Nikkei 225
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| Amount: | $3.84 million
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| Maturity: | Oct. 16, 2018
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| Coupon: | 5.5%, payable quarterly
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below its 65% downside threshold level, in which case full exposure to decline of least performing index
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| Call: | Automatically at par plus the coupon if each index closes at or above redemption threshold level on any quarterly determination date
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| Initial index levels: | 2,153.74 for S&P 500, 3,000.57 for Euro Stoxx 50 and 16,860.09 for Nikkei 225
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| Redemption thresholds: | 100% of initial level on April 7, 2017, steps down by 2% each quarter thereafter
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| Pricing date: | Oct. 10
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| Settlement date: | Oct. 17
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61761JZ36
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