By Wendy Van Sickle
Columbus, Ohio, Jan. 5 – Morgan Stanley Finance LLC priced $3.32 million of contingent income autocallable securities due Jan. 3, 2020 linked to the worse performing of the Financials Select Sector index and the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.5% if each index closes at or above its 75% coupon threshold on the determination date that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any call review date after six months.
The payout at maturity will be par unless either index finishes below its 75% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Financials Select Sector index and Euro Stoxx Banks index
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| Amount: | $3,315,000
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| Maturity: | Jan. 3, 2020
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| Coupon: | 9.5% per year, payable quarterly if each index closes at or above coupon threshold on determination date that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
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| Call: | At par if each index closes at or above initial level on any quarterly call date beginning June 28, 2018
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| Initial levels: | 346.30 for Financial and 131.27 for Stoxx Banks
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| Downside/coupon thresholds: | 259.725 for Financial and 98.453 for Stoxx Banks, 75% of initial levels
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| Pricing date: | Dec. 28
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| Settlement date: | Jan. 3
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 2%
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| Cusip: | 61768CWP8
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