New York, Jan. 31 - Morgan Stanley priced $3.32 million of 0% contingent income autocallable securities due Jan. 31, 2028 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 8% per year in years one to five, 10% per year in years six to 10 and 15% until maturity if the index closes at or above the barrier level, which is 75% of the initial index level, on a monthly determination date. Otherwise, no contingent monthly coupon will be paid that month.
Beginning on Jan. 31, 2018, 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 notes are not called and the final index level is greater than or equal to the downside threshold level, which is 50% of the initial index level, the payout at maturity will be par plus the final contingent monthly coupon, if any. Otherwise, investors will be fully exposed to the index's decline from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying index: | Russell 2000
|
| Amount: | $3.32 million
|
| Maturity: | Jan. 31, 2028
|
| Coupon: | Coupon will be paid monthly at rate of 8% per year in years one to five, 10% per year in years six to 10 and 15% until maturity if index closes at or above coupon barrier level on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | Par plus final contingent monthly coupon, if any, if final index level is greater than or equal to downside threshold; if final index level is less than downside threshold, full exposure to index's decline from initial level
|
| Call: | Beginning on Jan. 31, 2018, 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: | 907.31
|
| Coupon barrier level: | 680.4825, 75% of initial level
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| Downside threshold: | 453.655, 50% of initial level
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| Pricing date: | Jan. 29
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| Settlement date: | Jan. 31
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| Underwriter: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
|
| Cusip: | 61761JBN8
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