By Susanna Moon
Chicago, Feb. 1 – Morgan Stanley Finance LLC priced $924,000 of 0% jump securities with autocallable feature due Oct. 28, 2021 linked to the least performing of the SPDR S&P Biotech exchange-traded fund and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annual call premium of 12% if each fund closes at or above its initial level on any annual determination date after six months.
If each fund closes at or above its initial level, the payout at maturity will be $1,450 per $1,000 principal amount.
If either fund falls by up to its 70% downside threshold, the payout will be $1,100 per $1,000 of notes.
Otherwise, investors will be fully exposed to any losses of the worse performing fund.
The notes will be guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying funds: | SPDR S&P Biotech ETF and the Technology Select Sector SPDR Fund
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| Amount: | $924,000
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| Maturity: | Oct. 28, 2021
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If each fund gains, par plus 45%; if either fund falls by up to 30%, par plus 10%; otherwise, 1% loss per 1% decline of worse performing fund
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| Call: | At par plus 12% per year if each fund closes at or above initial level on any annual determination date beginning July 24, 2018
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| Initial levels: | $94.34 for biotech fund, $68.23 for tech fund
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| Barrier levels: | $66.038 for biotech fund, $47.761 for tech fund; 70% of initial levels
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| Pricing date: | Jan. 24
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| Settlement date: | Jan. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.75%
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| Cusip: | 61768CZA8
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