Published on 6/21/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $5 million contingent income autocallables tied to indexes
By Wendy Van Sickle
Columbus, Ohio, June 21 – Morgan Stanley Finance LLC priced $5 million of contingent income autocallable securities due June 17, 2032 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 5% if each index closes at or above the 90% coupon barrier on the determination date that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above 109.5% of its initial level on any quarterly determination date other than the final determination date.
The payout at maturity will be par plus the contingent coupon unless any index finishes below its 50% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing index.
The notes are guaranteed by Morgan Stanley.
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, S&P 500 and Russell 2000
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| Amount: | $5 million
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| Maturity: | June 17, 2032
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| Coupon: | 5% annualized for each quarter that each index closes at or above barrier on observation date for quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each index finishes at or above barrier; otherwise, 1% loss for each 1% decline of worst performing index
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| Call: | At par plus contingent payment if each index closes at or above 109.5% of initial level on any quarterly determination dates other than the final determination date
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| Initial index levels: | 3,547.15 for Stoxx, 2,437.92 for S&P and 1,417.573 for Russell
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| Coupon barriers: | 3,192.435 for Stoxx, 2,194.128 for S&P and 1,275.816 for Russell; 90% of initial levels
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| Downside thresholds: | 1,773.575 for Stoxx, 1,218.96 for S&P and 708.787 for Russell; 50% of initial levels
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| Pricing date: | June 16
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| Settlement date: | June 21
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4.5%
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| Cusip: | 61768CLP0
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