By Jennifer Chiou
New York, Dec. 11 – Morgan Stanley priced $3.75 million of 0% trigger participation securities due June 13, 2019 linked to the Morgan Stanley SmartInvest Equity Index (Price Return), according to a 424B2 filing with the Securities and Exchange Commission.
The index is a quantitative, rules-based, long-only equity index that aims to invest, at any one time, in 40 stocks included in the S&P 500 index that are among the more concentrated reported positions held by hedge funds.
If the final index level is greater than the initial index level, the payout at maturity will be par of $10 plus the index return.
If the final index level is less than or equal to the initial index level but greater than or equal to the trigger level, the payout will be par. The trigger level will be 85% of the initial index level.
If the final index level is less than the trigger level, investors will lose 1% for every 1% that the final index level is less than the initial level.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Morgan Stanley
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| Issue: | Trigger participation securities
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| Underlying index: | Morgan Stanley SmartInvest Equity Index (Price Return)
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| Amount: | $3.75 million
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| Maturity: | June 13, 2019
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If index return is positive, par plus index return; par for losses up to 15%; full exposure to losses if index falls beyond trigger level
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| Initial level: | 5,137.68
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| Trigger level: | 4,367.028, 85% of initial level
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| Pricing date: | Dec. 9
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| Settlement date: | Dec. 12
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as dealer
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| Fees: | 3%
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| Cusip: | 61764M232
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