Published on 7/12/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.22 million 9% contingent income autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, July 12 – Morgan Stanley Finance LLC priced $1.22 million of contingent income autocallable securities due June 30, 2033 linked to the Euro Stoxx 50 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a fixed coupon at an annualized rate of 9% for the first three years, then a contingent coupon at an annualized rate of 9% if each index closes above its initial level on a quarterly review date, in which case a coupon will also be paid for any previously unpaid quarter.
The notes will be called at par if each index closes at or above initial level on any review date after 5.5 years.
The payout at maturity will be par plus any coupon due unless any underlying index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
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 contingent income securities
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| Underlying indexes: | Euro Stoxx 50, S&P 500 and Russell 2000
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| Amount: | $1,222,000
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| Maturity: | June 30, 2033
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| Coupon: | 9% annualized, payable quarterly for first three years, then payable quarterly for any quarter that each index closes at or above initial level on review date, in which case a coupon will also be paid for any previously unpaid quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes above 50% downside threshold, par, plus any coupon due; otherwise, 1% loss for each 1% decline of worst performing index
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| Call: | At par if each index closes at or above initial level on any quarterly call date after 5.5 years
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| Initial levels: | 3,368.72 for Stoxx, 2,723.06 for S&P and 1,668.527 for Russell
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| Downside thresholds: | 1,684.36 for Stoxx, 1,361.53 for S&P and 834.264 for Russell, 50% of initial levels
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| Pricing date: | June 26
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| Settlement date: | June 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768C3S4
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