Published on 1/23/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.69 million 10.1% contingent yield trigger callables tied to indexes
By Susanna Moon
Chicago, Jan. 23 – Morgan Stanley Finance LLC priced $3.69 million of trigger callable contingent yield notes with daily coupon observation due July 22, 2020 linked to the least 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 will pay a contingent quarterly coupon at an annual rate of 10.1% if each index closes at or above its 70% coupon barrier on each trading day during that quarter.
The notes will be callable at par of $10 on each quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par unless either index finishes below its 70% 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 and UBS Financial Services Inc. are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $3,689,000
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| Maturity: | July 22, 2020
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| Coupon: | 10.1% annualized, payable quarterly if each index closes at or above its 70% coupon barrier each day that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss per 1% decline of worst performing index
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| Call option: | At par on each quarterly observation date starting July 19, 2018
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| Initial index levels: | 2,786.24 for S&P, 1,591.972 for Russell and 3,612.61 for Stoxx
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| Downside thresholds: | 2,089.68 for S&P, 1,193.979 for Russell and 2,709.46 for Stoxx, 70% of initial levels
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| Strike date: | Jan. 12
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| Pricing date: | Jan. 19
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| Settlement date: | Jan. 22
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| Agents: | Morgan Stanley and UBS Financial Services Inc.
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| Fees: | 1.5%
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| Cusip: | 61768M386
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