Published on 10/5/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $15.93 million 7% contingent yield trigger autocalls tied to indexes
By Susanna Moon
Chicago, Oct. 5 – Morgan Stanley Finance LLC priced $15.93 million of trigger autocallable contingent yield notes due Sept. 30, 2027 linked to the least 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 quarterly coupon at an annualized rate of 7% if each index closes at or above its 70% coupon barrier on the determination date for that quarter.
The notes will be called at par 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 coupon unless either index finishes below its 50% downside threshold, in which case investors will be fully exposed to the decline of the worse performing index.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
The notes are guaranteed by Morgan Stanley.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | JPMorgan Chase & Co.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 index and Euro Stoxx 50
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| Amount: | $15,933,930
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| Maturity: | Sept. 30, 2027
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| Coupon: | 7% per year, payable quarterly if each index closes at or above 70% coupon barrier on determination date that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above 50% downside threshold, par; otherwise, full exposure to decline of worse performing index
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| Call: | At par if each index closes at or above its initial level on any quarterly observation date beginning Sept. 27, 2018
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| Initial levels: | 1,484.813 for Russell, 3,555.17 for Stoxx
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| Coupon barriers: | 1,039.369 for Russell, 2,488.62 for Stoxx; 70% of initial levels
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| Downside thresholds: | 742.407 for Russell, 1,777.59 for Stoxx; 50% of initial levels
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| Pricing date: | Sept. 27
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| Settlement date: | Sept. 29
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768J276
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