Published on 12/19/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $4 million trigger autocallable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 19 – Morgan Stanley Finance LLC priced $4 million of trigger autocallable contingent yield notes due Dec. 17, 2027 linked to the lesser performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 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 7.75% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
After one year, the notes will be called at par if each index closes at or above its initial level on any quarterly observation date other than the final one.
The payout at maturity will be par unless any index finishes below the 50% downside threshold, in which case investors will lose 1% for each 1% decline of the worst 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: | S&P 500, Euro Stoxx 50 and Russell 2000
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| Amount: | $4 million
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| Maturity: | Dec. 17, 2027
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| Coupon: | 7.75%, 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: | After one year, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date other than the final one
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| Payout at maturity: | Par unless either index closes below 50% downside threshold, in which case 1% loss for each 1% decline of worse performing index
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| Initial index levels: | 3,581.76 for Stoxx, 2,662.85 for S&P 500, 1,524.446 for Russell 2000
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| Coupon barriers: | 2,507.23 for Stoxx, 1,864.00 for S&P 500, 1,067.112 for Russell 2000; 70% of initial levels
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| Downside thresholds: | 1,790.88 for Stoxx, 1,331.43 for S&P 500, 762.223 for Russell 2000; 50% of initial levels
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| Pricing date: | Dec. 13
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| Settlement date: | Dec. 18
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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: | 61768K737
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