Published on 10/5/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5 million contingent income autocallables linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 5 – Morgan Stanley Finance LLC priced $5 million contingent income autocallable securities due Oct. 4, 2022 linked to the least performing of the Euro Stoxx 50 index, the Tokyo Stock Price index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 8.5% per year if each index closes at or above its coupon barrier, 75% of its initial level, on the determination date for that quarter.
The notes will be automatically called at par plus the related contingent coupon if each index closes at or above its initial level on any quarterly redemption determination date other than the final determination date.
The payout at maturity will be par unless the final level of any index is less than its 70% downside threshold level, in which case investors will lose 1% for each 1% that the least-performing index declines from its initial level.
Morgan Stanley & Co. LLC Morgan Stanley Smith Barney LLC are the agents.
Issuer: | Morgan Stanley Finance LLC
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Gurantor: | Morgan Stanley
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Issue: | Contingent income autocallable securities
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Underlying indexes: | Tokyo Stock Price, Russell 2000 and Euro Stoxx 50
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Amount: | $5 million
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Maturity: | Oct. 4, 2022
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Coupon: | 8.5% per year, payable quarterly if each index closes at or above coupon barrier on review date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any index finishes below downside threshold level, in which 1% loss for every 1% that least-performing index finishes below initial level
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Call: | Automatically at par plus contingent coupon if each index closes at or above initial level on any quarterly review date other than final one
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Initial index levels: | 1,674.75 for Tokyo, 3,594.85 for Stoxx, 1,490.861 for Russell
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Coupon barriers: | 1,256.063 for Tokyo, 2,696.138 for Stoxx, 1,118.146 for Russell; 75% of initial levels
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Downside thresholds: | 1,172.325 for Tokyo, 2,516.395 for Stoxx, 1,043.6027 for Russell; 70% of initial levels
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Pricing date: | Sept. 29
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Settlement date: | Oct. 4
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Agents: | Morgan Stanley & Co. LLC and Morgan Stanley Smith Barney LLC
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Fees: | 3%
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Cusip: | 61768CRH2
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