Published on 6/21/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million contingent income autocallables tied to indexes
By Devika Patel
Knoxville, Tenn., June 21 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Dec. 4, 2020 linked to the worst performing of the Russell 2000 index and the S&P 500 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 monthly coupon at an annual rate of 8.15% if each index closes at or above its 70% coupon barrier level on the observation date for that month.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on Nov. 29, 2019, Feb. 28, 2020, May 29, 2020 or Aug. 31, 2020.
The payout at maturity will be par plus the final coupon, if any, unless either index closes below the 70% downside threshold level during the life of the notes, in which case investors will be fully exposed to any losses of the worst performing index if either index has declined or will receive par if the worst performer is flat or gains.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income auto-callable securities
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| Underlyings: | Russell 2000 index and S&P 500 index
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| Amount: | $1 million
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| Maturity: | Dec. 4, 2020
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| Coupon: | 8.15% annualized coupon for each month that each index closes at or above initial level on observation date for that month
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus contingent coupon, if any, unless either index closes below downside threshold level during the life of the notes, in which case full exposure to any losses of worst performing index or par if worst performer is flat or gains
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| Call: | At par plus contingent payment if each index closes at or above initial level on Nov. 29, 2019, Feb. 28, 2020, May 29, 2020 or Aug. 31, 2020
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| Initial levels: | 1,465.487 for Russell and 2,752.06 for S&P
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| Coupon barrier/downside thresholds: | 1,025.841 for Russell and 1,926.442 for S&P, 70% of initial levels
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| Pricing date: | May 31
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| Settlement date: | June 5
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.625%
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| Cusip: | 61769HAK1
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