By Marisa Wong
Morgantown, W.Va., Aug. 29 – Morgan Stanley Finance LLC priced $3.43 million of 0% outperformance buffered Performance Leveraged Upside Securities due Aug. 27, 2020 linked to the performance of the iShares Russell 1000 Value exchange-traded fund relative to the iShares Russell 1000 Growth ETF, according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If the Value ETF outperforms the Growth ETF, the payout at maturity will be par of $1,000 plus 150% of the outperformance return, capped at $1,580 per PLUS. The outperformance return is the return of the Value ETF minus the return of the Growth ETF.
If the return of the Value ETF is equal to the return of the Growth ETF or if the Value ETF underperforms the Growth ETF but not by more than 10%, i.e., the outperformance return is not less than negative 10%, the payout will be par.
If the Value ETF underperforms the Growth ETF such that the outperformance return is less than negative 10%, investors will lose 1% for every 1% that the outperformance return is below negative 10%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Outperformance buffered Performance Leveraged Upside Securities
|
| Underlying: | iShares Russell 10000 Value ETF relative to iShares Russell 1000 Growth ETF
|
| Amount: | $3,425,000
|
| Maturity: | Aug. 27, 2020
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.5% for every 1% that the Value ETF outperforms the Growth ETF; par if return of the Value ETF is equal to the return of the Growth ETF or if the Value ETF underperforms the Growth ETF but not by more than 10%; 1% loss for every 1% that Value ETF underperforms Growth ETF by more than 10%
|
| Initial prices: | $126.67 for Value ETF, $151.75 for Growth ETF
|
| Pricing date: | Aug. 22
|
| Settlement date: | Aug. 27
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.25%
|
| Cusip: | 61768DCM5
|
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