Published on 1/19/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $510,000 5.5% contingent income autocalls tied to indexes
By Susanna Moon
Chicago, Jan. 19 – Morgan Stanley Finance LLC priced $510,000 of contingent income autocallable securities due Oct. 17, 2022 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 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 5.5% if each index closes at or above its 70% 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 its initial level on any call review date after one year.
The payout at maturity will be par unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| 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: | Russell 2000, S&P 500 and Euro Stoxx 50
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| Amount: | $510,000
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| Maturity: | Oct. 17, 2022
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| Coupon: | 5.5% annualized, payable quarterly if each index closes at or above 70% coupon barrier on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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| Call: | At par if each index closes at or above initial level on any quarterly call date beginning Jan. 16, 2019
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| Initial index levels: | 1,591.972 for Russell, 2,786.24 for S&P and 3,612.61 for Stoxx
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| Coupon barriers: | 1,114.3804 for Russell, 1,950.368 for S&P and 2,528.827 for Stoxx; 70% of initial levels
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| Trigger levels: | 955.183 for Russell, 1,671.744 for S&P and 2,167.566 for Stoxx; 60% of initial levels
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 18
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 3.75%
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| Cusip: | 61768CYF8
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