Published on 4/10/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.64 million contingent income autocallables linked to indexes
By Angela McDaniels
Tacoma, Wash., April 10 – Morgan Stanley Finance LLC priced $2.64 million of contingent income autocallable securities due March 31, 2032 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The interest rate is fixed at 8.5% per year for the first three years. In years four through 15, if each index closes at or above its downside threshold level, 50% of its initial level, on the determination date for that quarter, the notes pay a contingent coupon at an annual rate of 8.5% plus any previously unpaid contingent quarterly coupons.
Beginning in September 2022, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless the final level of any index is less than its downside threshold level, in which case investors will be fully exposed to the decline of the worst-performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
|
| Amount: | $2,637,000
|
| Maturity: | March 31, 2032
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| Coupon: | Interest rate is fixed at 8.5% per year for first three years; in years four through 15, if each index closes at or above downside threshold level on determination date for that quarter, notes pay contingent coupon at an annual rate of 8.5% plus any previously unpaid contingent quarterly coupons
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par; if final level of any index is less than downside threshold level, full exposure to decline of worst-performing index
|
| Call: | Beginning in September 2022, automatically at par if each index closes at or above its initial level on any quarterly determination date
|
| Initial index levels: | 2,358.57 for S&P 500, 3,465.07 for Euro Stoxx 50 and 1,367.261 for Russell 2000
|
| Downside thresholds: | 1,179.285 for S&P 500, 1,732.535 for Euro Stoxx 50 and 683.631 for Russell 2000; 50% of initial levels
|
| Pricing date: | March 28
|
| Settlement date: | March 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61768CGA9
|
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