New Issue: Morgan Stanley prices $1.14 million contingent buffer notes linked to bank ETF

By Angela McDaniels

Tacoma, Wash., April 17 – Morgan Stanley priced $1.14 million of 0% contingent buffer equity notes due May 1, 2018 linked to the SPDR S&P Bank exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-out event will occur if the final share price is less than the knock-out level, 80% of the initial share price.

If a knock-out event has not occurred, the payout at maturity will be par plus the greater of the ETF return and zero, subject to a maximum return of 15.88%. If a knock-out event has occurred, investors will lose 1% for every 1% that the final share price is less than the initial share price.

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

Issuer:	Morgan Stanley
Issue:	Contingent buffer equity notes
Underlying ETF:	SPDR S&P Bank ETF
Amount:	$1.14 million
Maturity:	May 1, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	If final share price is greater than or equal to knock-out level, par plus greater of ETF return and zero, subject to 15.88% maximum return; otherwise, 1% loss for every 1% that final share price is less than initial share price
Initial share price:	$41.01
Knock-out level:	$32.808, 80% of initial share price
Final share price: Average of stock’s closing share prices on five trading days ending April 26, 2018
Pricing date:	April 13
Settlement date:	April 19
Agent:	Morgan Stanley & Co. LLC
Placement agents:	J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA
Fees:	1%
Cusip:	61761J4A4

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