By Angela McDaniels
Tacoma, Wash., Oct. 7 – Morgan Stanley priced $2.04 million of 0% autocallable trigger Performance Leveraged Upside Securities due Oct. 4, 2018 linked to the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund closes at or above the call threshold level, 118% of the initial share price, on March 30, 2017, the securities will be automatically redeemed and investors will receive the early redemption payment, $11.80 per $10.00 principal amount of notes.
If the notes are not called and the final share price is greater than the initial share price, the payout at maturity will be par plus two times the fund return. If the fund finishes at or below the initial share price but at or above the trigger level, 80% of the initial share price, the payout will be par. If the fund finishes below the trigger level, investors will be fully exposed to the decline.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Autocallable trigger Performance Leveraged Upside Securities
|
| Underlying fund: Energy Select Sector SPDR Fund
|
| Amount: | $2.04 million
|
| Maturity: | Oct. 4, 2018
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If notes are not called and final share price is greater than initial share price, par plus two times fund return; if fund finishes at or below initial share price but at or above trigger level, par; if fund finishes below trigger level, full exposure to decline
|
| Call: | Automatically at 118% of par if fund closes at or above call threshold level on March 30, 2017
|
| Initial share price: | $61.20
|
| Call threshold: | $72.216, 118% of initial share price
|
| Trigger level: | $48.96, 80% of initial share price
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| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 5
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61765R610
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