By Susanna Moon
Chicago, Feb. 1 - Morgan Stanley priced $38.63 million of 0% contingent income autocallable securities due Jan. 30, 2020 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon if the index closes at or above the 70% barrier level on a monthly determination date. The contingent monthly coupon will be 7.5% for the first five years, stepping up to 9% for years six to 10 and to 13% after that.
The notes will be called at par plus the contingent coupon if the index closes at or above the initial index level on any quarterly redemption determination date after five years.
If the notes are not called and the index finishes at or above the 50% downside threshold level, the payout at maturity will be par plus the final contingent monthly coupon.
Otherwise, investors will be fully exposed to losses.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable step-up securities
|
| Underlying index: | Russell 2000
|
| Amount: | $38,627,000
|
| Maturity: | Jan. 28, 2028
|
| Coupon: | If index closes at or above barrier level on monthly determination date, 7.5% for first five years, stepping up to 9% for years six to 10 and to 13% after that
|
| Price: | Par
|
| Payout at maturity: | Par plus final contingent monthly coupon if index finishes at or above barrier level; otherwise, full exposure to losses
|
| Call: | At par plus contingent coupon if index closes at or above initial level on any quarterly call date beginning Feb. 4, 2018
|
| Initial index level:
|
| Coupon barrier level: | 627.837, 70% of initial level
|
| Downside threshold level: 448.455, 50% of initial level
|
| Pricing date: | Jan. 30
|
| Settlement date: | Feb. 4
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JBQ1
|
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