By Wendy Van Sickle
Columbus, Ohio, Oct. 4 – Morgan Stanley Finance LLC priced $7.17 million of contingent income autocallable securities due Oct. 5, 2018 linked to the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.05% if the ETF closes at or above the 75% downside threshold level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the ETF closes at or above the initial level on any of the first three determination dates.
The payout at maturity will be par plus the final coupon unless the ETF finishes below its 75% downside threshold, in which case investors will lose 1% for each 1% decline of the stock.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying ETF: | SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $7,165,500
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| Maturity: | Oct. 5, 2018
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| Coupon: | 8.05% per year, payable quarterly if ETF closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to decline
|
| Call: | At par plus contingent coupon if ETF closes at or above initial level on any of the first three determination dates
|
| Initial share price: | $34.09
|
| Downside threshold: | $25.568, 75% of initial share price
|
| Pricing date: | Sept. 29
|
| Settlement date: | Oct. 4
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.75%
|
| Cusip: | 61768J433
|
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