Published on 9/12/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $525,000 of contingent income autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept.12 – Morgan Stanley Finance LLC priced $525,000 of contingent income autocallable securities due Sept. 5, 2023 linked to the worst performing of the Nasdaq-100 index, the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 7.1% if each index closes above its coupon barrier, 70% of its initial level, on the observation date.
After one year, the notes will be automatically called at par if all three indexes close at or above their initial levels on any quarterly observation date.
The payout at maturity will be par plus the final coupon unless any index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Autocallable contingent income securities
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| Underlying indexes: | Nasdaq-100 index, Euro Stoxx 50 index and Russell 2000 index
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| Amount: | $525,000
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| Maturity: | Sept. 5, 2023
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| Coupon: | 7.1% annualized, payable quarterly if each index closes at or above coupon barrier on related observation date
|
| Price: | Par
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| Payout at maturity: | If all three indexes finish above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call: | After one year, automatically at par if all three indexes close at or above initial level on any quarterly call date
|
| Initial levels: | 7,642.67 for Nasdaq, 3,430.99 for Stoxx and 1,732.354 for Russell
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| Downside thresholds: | 5,349.869 for Nasdaq, 2,401.693 for Stoxx and 1,212.648 for Russell; 70% of initial levels
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| Pricing date: | Aug. 30
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| Settlement date: | Sept. 5
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4.05%
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| Cusip: | 61768DDK8
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