Published on 3/1/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4.57 million 9.3% contingent income callables tied to indexes
By Susanna Moon
Chicago, March 1 – Morgan Stanley Finance LLC priced $4.57 million of contingent income callable securities due Feb. 13, 2020 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 9.3% if each index closes at or above its 70% coupon barrier on the determination date that quarter.
The notes are callable at par on any call review date after six months.
The payout at maturity will be par unless any index finishes below its 70% 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 callable securities
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| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
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| Amount: | $4,565,000
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| Maturity: | Feb. 13, 2020
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| Coupon: | 9.3% 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 option: | At par on any quarterly call date beginning Aug. 14, 2018
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| Initial levels: | 1,477.836 for Russell, 3,325.99 for Stoxx and 2,619.55 for S&P
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| Downside thresholds: | 1,034.485 for Russell, 2,328.193 for Stoxx and 1,833.685 for S&P; 70% of initial levels
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| Pricing date: | Feb. 9
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| Settlement date: | Feb. 14
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 1.5%
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| Cusip: | 61768CB97
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