By Wendy Van Sickle
Columbus, Ohio, Dec. 7 – Morgan Stanley Finance LLC priced $14 million of trigger autocallable contingent yield notes due Dec. 5, 2024 linked to the least performing of the Russell 2000 index and the Dow Jones industrial average, 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 6.55% 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 plus the coupon if each index closes at or above its initial level on any observation date after six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above the coupon barrier.
If the worst performer finishes below its coupon barrier but at or above the 60% downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the worse performing index from its initial level.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as placement agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average
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| Amount: | $14 million
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| Maturity: | Dec. 5, 2024
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| Coupon: | 6.55%, payable quarterly if each index closes at or above coupon barrier level on observation date
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, lose 1% for every 1% decline of worst performer from initial level
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| Call: | At par plus coupon if each index closes at or above initial level on any observation date after six months
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| Initial levels: | 2,147.42 for Russell 2000, 34,022.04 for Dow
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| Coupon barriers: | 1,503.194 for Russell 2000, 23,815.43 for Dow; 70% of initial levels
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| Downside thresholds: | 1,503.194 for Russell 2000, 23,815.43 for Dow; 70% of initial levels
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| Pricing date: | Dec. 1
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| Settlement date: | Dec. 6
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| Agents: | Morgan Stanley & Co. LLC
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| Placement agent: | UBS Financial Services Inc.
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| Fees: | 2%
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| Cusip: | 61773N288
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