Published on 12/12/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.85 million worst-of autocallable RevCons on three stocks
By Marisa Wong
Morgantown, W.Va., Dec. 12 – Morgan Stanley priced $3.85 million of 6.8% worst-of fixed coupon autocallable RevCons due June 11, 2018 linked to the worst performing of the common stocks of Apple Inc., Gilead Sciences, Inc. and Tiffany & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If each stock closes at or above its redemption threshold level, 95% of the initial price, on a quarterly determination date, the notes will be automatically called at par plus the coupon.
If each stock finishes at or above the 55% downside threshold level, the payout at maturity will be par plus the final coupon. Otherwise, investors will receive a number of shares of the worst performing stock equal to $1,000 divided by the initial price of that stock or, at the issuer’s option, the cash value of those shares.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
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| Issue: | Worst-of fixed coupon autocallable RevCons
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| Underlying stocks: | Apple Inc. (Symbol: AAPL), Gilead Sciences, Inc. (Symbol: GILD) and Tiffany & Co. (Symbol: TIF)
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| Amount: | $3,845,000
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| Maturity: | June 11, 2018
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| Coupon: | 6.8%, payable quarterly
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold level, par plus the final coupon; otherwise, a number of shares of the worst performing stock equal to $1,000 divided by the initial price of that stock or, at the issuer’s option, the cash value of those shares
|
| Call: | Automatically at par if each stock closes at or above its redemption threshold level on a quarterly determination date
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| Initial share prices: | $109.49 for Apple, $72.84 for Gilead, $82.51 for Tiffany
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| Redemption thresholds: | $104.016 for Apple, $69.198 for Gilead, $78.385 for Tiffany; 95% of initial levels
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| Downside thresholds: | $60.220 for Apple, $40.062 for Gilead, $45.381 for Tiffany; 55% of initial levels
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| Exchange ratio: | 9.13325 for Apple, 13.72872 for Gilead, 12.11974 for Tiffany
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| Pricing date: | Dec. 2
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| Settlement date: | Dec. 9
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| Underwriter: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61761J3S6
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