Published on 10/25/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million 8% contingent income autocalls on index, fund
By Susanna Moon
Chicago, Oct. 25 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Oct. 15, 2020 linked to the iShares MSCI Emerging Markets ETF and the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if each underlying asset closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each asset closes at or above its initial level on any review date after six months.
The payout at maturity will be par unless either underlying asset finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index or fund.
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: | Autocallable contingent income securities
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| Underlying assets: | Euro Stoxx 50 index, iShares MSCI Emerging Markets ETF
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| Amount: | $1 million
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| Maturity: | Oct. 15, 2020
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| Coupon: | 8% annualized, payable quarterly if each asset closes at or above 70% coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If each asset finishes at or above 70% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index or fund
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| Call: | At par if each asset closes at or above its initial level on any quarterly call date beginning April 11, 2019
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| Initial levels: | 3,209.19 for Stoxx, $39.14 for fund
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| Downside thresholds: | 2,246.433 for Stoxx, $27.398 for fund, 70% of initial levels
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| Pricing date: | Oct. 11
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| Settlement date: | Oct. 16
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.7%
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| Cusip: | 61768DHH1
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