By Angela McDaniels
Tacoma, Wash., Aug. 30 - Morgan Stanley priced $3 million of buffered autocallable securities with contingent coupon due Aug. 31, 2022 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a contingent monthly coupon at the rate of 10% per year if the index closes at or above the barrier level, 65% of the initial index level, on a monthly determination date. Otherwise, no contingent monthly coupon will be paid that month.
Beginning in August 2017, the notes will be automatically redeemed at par plus the contingent monthly coupon if the index closes at or above the initial index level on any quarterly redemption determination date.
If the final index level is greater than or equal to the barrier level, the payout at maturity will be par plus the final contingent monthly coupon. Otherwise, investors will lose 1% for every 1% that the index declines beyond 35%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Buffered autocallable securities with contingent coupon
|
| Underlying index: | Russell 2000
|
| Amount: | $3 million
|
| Maturity: | Aug. 31, 2022
|
| Coupon: | Contingent monthly coupon paid at rate of 10% per year if index closes at or above barrier level on determination date for that month; otherwise, no coupon will be paid that month
|
| Price: | Par
|
| Payout at maturity: | If final index level is greater than or equal to barrier level, par plus final coupon; otherwise, 1% loss for every 1% that index declines beyond 35%
|
| Call: | Beginning in August 2017, notes will be automatically redeemed at par plus contingent monthly coupon if index closes at or above initial index level on any quarterly redemption determination date
|
| Initial index level: | 814.28
|
| Barrier level: | 529.282, 65% of initial level
|
| Pricing date: | Aug. 28
|
| Settlement date: | Aug. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 4%
|
| Cusip: | 617482W26
|
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