Published on 7/6/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2 million trigger gears due 2025 linked to index basket
By Wendy Van Sickle
Columbus, Ohio, July 6 – Morgan Stanley Finance LLC priced $2 million 0% trigger gears securities due June 30, 2025 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.
If the basket finishes above the initial level, the payout at maturity will be par plus the upside gearing of 3.25 times the gain.
If the basket falls but finishes at or above the 50% downside threshold level, the payout will be par.
Otherwise, investors will lose 1% for each 1% decline.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent and UBS Financial Services Inc. is the dealer.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger gears
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| Underlying basket: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei 225 index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight) and Hang Seng index (5% weight)
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| Amount: | $2 million
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| Maturity: | June 30, 2025
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Par plus 3.25 times any basket gain; par if basket declines by 50% or less; if basket finishes below 50% downside threshold, 1% loss per 1% decline
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| Initial levels: | 3,369.21 for Euro Stoxx, 7,509.84 for FTSE, 22,338.15 for Nikkei, 8,458.75 for Swiss Market, 6,210.408 for S&P/ASX and 28,961.39 for Hang Seng
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| Pricing date: | June 25
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| Settlement date: | June 28
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| Agents: | Morgan Stanley & Co. LLC and UBS Financial Services Inc.
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| Fees: | 3.5%
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| Cusip: | 61768Q866
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