Published on 11/9/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $12.22 million trigger absolute return step notes on index basket
By Susanna Moon
Chicago, Nov. 9 – Morgan Stanley Finance LLC priced $12.22 million of 0% trigger absolute return step securities due Oct. 31, 2023 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight
If the basket finishes at or above its initial level, the payout at maturity will be par plus the greater of the gain and the step return of 52.4%.
If the basket falls but finishes at or above the 70% downside threshold, the payout will be par plus the absolute value of the return.
Otherwise, investors will be fully exposed to any losses.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC 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 absolute return step securities
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| Underlying basket: | Euro Stoxx 50 (40% weight), FTSE 100 index (20% weight), Nikkei 225 index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and Hang Seng index (5% weight)
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| Amount: | $12,223,970
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| Maturity: | Oct. 31, 2023
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If each index gains, par plus greater of 52.4% and index return; if index falls by up to 30%, par plus absolute return; otherwise, 1% loss per 1% decline
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| Initial index level: | 3,154.93 for Stoxx, 7,026.32 for FTSE, 21,149.80 for Nikkei, 8,759.62 for Swiss Market, 5,728.155 for S&P/ASX and 24,812.04 for Hang Seng
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| Downside thresholds: | 70% of initial levels
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| Pricing date: | Oct. 29
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| Settlement date: | Oct. 31
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768T4
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