Published on 5/16/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $5.31 million trigger autocallable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, May 16 – Morgan Stanley Finance LLC priced $5.31 million of trigger autocallable contingent yield notes due May 16, 2028 linked to the least performing of the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 7.05% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
After one year, the notes will be called at par if each index closes at or above its initial level on any quarterly observation date.
The payout will be par plus the final coupon, if any, unless either index finishes below its 50% downside threshold, in which case investors will lose 1% for each 1% decline of the least-performing index.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Euro Stoxx 50, Russell 2000
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| Amount: | $5,311,550
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| Maturity: | May 16, 2028
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| Coupon: | 7.05%, payable quarterly if each index closes at or above coupon barrier on observation date
|
| Price: | Par of $10
|
| Call: | After one year, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
|
| Payout at maturity: | Par plus final coupon, if any, unless either index finishes below 50% downside threshold, in which case investors will lose 1% for each 1% decline of least-performing index
|
| Initial index levels: | 1,606.792 for Russell and 3,565.52 for Euro Stoxx
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| Coupon barriers: | 1,124.754 for Russell and 2,495.86 for Euro Stoxx; 70% of initial levels
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| Downside thresholds: | 803.396 for Russell and 1,782.76 for Euro Stoxx; 50% of initial levels
|
| Pricing date: | May 11
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| Settlement date: | May 16
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 3.5%
|
| Cusip: | 61768Q247
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