New Issue: Morgan Stanley sells $1.45 million 8.2% contingent income autocalls tied to stocks

By Susanna Moon

Chicago, Dec. 4 – Morgan Stanley Finance LLC priced $1.45 million of contingent income autocallable securities due Dec. 2, 2020 linked to the lesser performing of the common stocks of Home Depot Inc. and Lowe’s Cos., Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8.2% if each stock closes at or above its 70% downside threshold on the determination date for that quarter.

The notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any redemption determination date after six months.

The payout at maturity will be par unless either stock finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worse performing stock.

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
Guarantor:	Morgan Stanley
Issue:	Contingent income autocallable securities
Underlying stocks:	Home Depot Inc. (Symbol: HD) Lowe’s Cos., Inc. (Symbol: LOW)
Amount:	$1,449,000
Maturity:	Dec. 2, 2020
Coupon:	8.2% per year, payable quarterly if each stock closes at or above downside threshold on determination date that quarter
Price:	Par
Payout at maturity:	If each stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing stock
Call:	At par if each stock closes at or above initial level on any redemption determination date beginning May 29, 2018
Initial levels:	$174.16 for Home Depot, $79.83 for Lowe’s
Downside thresholds:	$121.912 for Home Depot, $55.881 for Lowe’s, 70% of initial levels
Pricing date:	Nov. 27
Settlement date:	Nov. 30
Agent:	Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
Fees:	2.5%
Cusip:	61768CUC9

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