Morgan Stanley plans contingent buffer notes on Regional Banking ETF

By Marisa Wong

Morgantown, W.Va., Dec. 7 – Morgan Stanley Finance LLC plans to price 0% contingent buffer equity notes due Dec. 27, 2018 linked to the SPDR S&P Regional Banking exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

A knock-out event occurs if the final share price is less than the initial share price by more than 15%.

If a knock-out event has not occurred, the payout at maturity will be par plus the greater of the 0% contingent minimum return and the ETF return, capped at 22.6%.

If a knock-out event has occurred, investors will lose 1% for every 1% share price decline.

The final share price will be the average of the closing share prices on the five trading days ending Dec. 21, 2018.

Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents.

The notes will price Dec. 8.

The Cusip number is 61761J4F3.

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