Published on 10/26/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.42 million 5.52% contingent income autocalls on pharma stocks
New York, Oct. 26 – Morgan Stanley Finance LLC priced $3.42 million of contingent income autocallable securities due July 30, 2019 linked to a basket of pharmaceutical stocks, according to a 424B2 filing with the Securities and Exchange Commission.
Included in the basket are the common stocks of Bristol-Myers Squibb Co. and Gilead Sciences, Inc. and the ordinary shares of GlaxoSmithKline plc.
The notes will pay a contingent monthly coupon at an annual rate of 5.52% plus any previously unpaid monthly coupons if each stock closes at or above its 55% downside threshold on the determination date for that month.
The notes will be called at par plus the contingent coupon if each stock closes at or above its redemption threshold on any determination date after four months.
The payout at maturity will be par plus the contingent coupon unless any stock finishes below its 55% downside threshold, in which case investors will lose 1% for each 1% decline in the worst performing stock.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the underwriter.
| 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 stocks: | Bristol-Myers Squibb Co. (Symbol: BMY), Gilead Sciences, Inc. (Symbol: GLD), GlaxoSmithKline plc (Symbol: GSK)
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| Amount: | $3,417,000
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| Maturity: | July 30, 2019
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| Coupon: | 5.52% per year, payable monthly with any previously unpaid coupons if each stock closes at or above downside threshold level on determination date for that month
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| Price: | Par
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| Payout at maturity: | If each stock’s final price is greater than or equal to downside threshold, par plus contingent coupon; otherwise, 1% loss per 1% decline
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| Call: | At par plus contingent coupon if each stock closes at or above redemption threshold on any monthly determination date beginning Feb. 23, 2018
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| Initial share prices: | $63.75 for Bristol-Myers, $80.17 for Gilead, 1,519.50p for GlaxoSmithKline
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| Downside thresholds: | $35.06375 for Bristol-Myers, $44.094 for Gilead, 835.725p for GlaxoSmithKline; 55% of initial share price
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| Redemption thresholds: | $60.563 for Bristol-Myers, $76.162 for Gilead, 1,443.525p for GlaxoSmithKline, 95% of initial share prices until Sept. 24, 2018; $57.375 for Bristol-Myers, $72.153 for Gilead, 1,367.55p for GlaxoSmithKline, 90% of initial share prices from Oct. 23, 2018 until June 24, 2019
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| Pricing date: | Oct. 24
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61768CSL2
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