Published on 1/23/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $7.81 million trigger autocallable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., Jan. 23 – Morgan Stanley Finance LLC priced $7.81 million of trigger autocallable contingent yield notes due Jan. 23, 2029 linked to the S&P 500 index and the MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 7.71% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any observation date after one year.
The payout at maturity will be par plus any coupon unless either index finishes below the 50% downside threshold level, in which case investors will lose 1% for each 1% decline of the worse performing index from its initial level.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | S&P 500 and MSCI Emerging Markets
|
| Amount: | $7,810,860
|
| Maturity: | Jan. 23, 2029
|
| Coupon: | 7.71%, payable quarterly if each index closes at or above coupon barrier level on observation date
|
| Price: | Par of $10
|
| Call: | At par plus contingent coupon if each index closes at or above initial level on any observation date after one year
|
| Payout at maturity: | Par plus any coupon unless index closes below downside threshold level, in which case 1% loss for each 1% decline of worse performing index from initial level
|
| Initial levels: | 2,670.71 for S&P 500, 1,018.00 for EM
|
| Coupon barriers: | 1,869.50 for S&P 500, 712.60 for EM, 70% of initial levels
|
| Downside thresholds: | 1,335.36 for S&P 500, 509.00 for EM, 50% of initial levels
|
| Pricing date: | Jan. 18
|
| Settlement date: | Jan. 24
|
| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61768W632
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