By Devika Patel
Knoxville, Tenn., Sept. 25 – Morgan Stanley Finance LLC priced $1.3 million of contingent income autocallable securities due Sept. 24, 2032 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a fixed quarterly coupon at an annual rate of 9% through September 2018 and will then pay a contingent quarterly coupon at an annual rate of 9% if each index closes at or above its initial level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date beginning on Sept. 21, 2020.
The payout at maturity will be par plus the final coupon, if any, unless either index finishes below the 50% downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlyings: | Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $1.3 million
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| Maturity: | Sept. 24, 2032
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| Coupon: | 9% fixed quarterly coupon through September 2018, then a 9% annualized coupon for each quarter that each index closes at or above initial level on determination date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus contingent coupon, if any, if each index finishes at or above downside threshold level; otherwise, full exposure to any losses of worst performing index
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| Call: | At par plus contingent payment if each index closes at or above initial level on any quarterly determination date beginning on Sept. 21, 2020
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| Initial levels: | 1,444.184 for Russell and 3,539.59 for Euro Stoxx
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| Downside thresholds: | 722.092 for Russell and 1,769.795 for Euro Stoxx, 50% of initial levels
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| Pricing date: | Sept. 21
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| Settlement date: | Sept. 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.35%
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| Cusip: | 61768CRD1
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