By Wendy Van Sickle
Columbus, Ohio, Jan. 6 – Morgan Stanley Finance LLC priced $1.59 million of 0% autocallable securities with fixed percentage buffered downside due Dec. 31, 2018 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be called at par plus a premium of 7.8% if the fund closes at or above its initial level on Jan. 4, 2018 and will be called at par plus a premium of 11.7% if the fund closes at or above its initial level on July 5, 2018.
If the fund return is positive, the payout at maturity will be par plus 15.6%. If the fund falls but remains above the knock-in level of 90%, the payout will be par. Otherwise, investors will lose 1% for each 1% decline beyond 10%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Autocallable securities with fixed percentage buffered downside
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| Underlying fund: | Energy Select Sector SPDR
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| Amount: | $1.59 million
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| Maturity: | Dec. 31, 2018
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 15.6% if return is positive; par if fund falls by up to 10%; 1% loss for each 1% decline beyond 10%
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| Call: | At par plus 7.8% if fund closes at or above initial level on Jan. 4, 2018 or at par plus 11.7% if fund closes at or above initial level on July 5, 2018
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| Initial price: | $75.54
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| Knock-in level: | $67.986, 90% of initial level
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| Pricing date: | Dec. 29
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| Settlement date: | Jan. 4
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| Agents: | Morgan Stanley & Co. LLC
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| Fees: | 2.61%
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| Cusip: | 61761JZ85
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