By Susanna Moon
Chicago, June 1 – Morgan Stanley priced $1.9 million of contingent income autocallable securities due May 29, 2025 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 will pay a contingent monthly coupon at an annual rate if each index closes at or above its barrier level, 70% of the initial level, on the determination date for that month. The contingent coupon will be 7% for the first four years, stepping up to 10% in year five and to 12% in year nine.
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 after one year.
The payout at maturity will be par plus the final contingent coupon unless either index finishes below the barrier 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
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $1.9 million
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| Maturity: | May 29, 2025
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| Coupon: | If each index closes at or above barrier level on observation date for that month, 7% for the first four years, stepping up to 10% on May 29, 2019 and to 12% on May 29, 2023; payable monthly
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless either index finishes below barrier level, in which case exposure to decline 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 May 29, 2016
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| Barrier levels: | 70% of initial levels
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| Pricing date: | May 26
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| Settlement date: | May 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61761JYV5
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