By Marisa Wong
Morgantown, W.Va., Nov. 22 – Morgan Stanley Finance LLC priced $1 million of 0% market plus notes due Nov. 21, 2019 linked to the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
A knock-out event occurs if the fund finishes below the initial price by more than the 35% knock-out buffer amount.
If a knock-out event does not occur, the payout at maturity will be par plus the greater of the contingent minimum return of 0% and the fund return.
If the fund finishes below the 65% knock-out level, the payout will be par plus the fund return, with full exposure to any losses.
Morgan Stanley & Co. LLC is the agent with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Market plus notes
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| Underlying fund: | Financial Select Sector SPDR fund
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| Amount: | $1 million
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| Maturity: | Aug. 30, 2017
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| Coupon: | 0%
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus greater of zero and fund return unless fund finishes below knock-out level, in which case par plus the fund return, with full exposure to any losses
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| Initial price: | $22.16
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| Knock-out level: | $14.404, 65% of initial price
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| Pricing date: | Nov. 18
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| Settlement date: | Nov. 23
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| Agent: | Morgan Stanley & Co. LLC
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| Placement agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA
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| Fees: | 2%
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| Cusip: | 61768CCF2
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