By Angela McDaniels
Tacoma, Wash., Feb. 26 – Morgan Stanley priced $1.03 million of contingent income autocallable cannon securities due Feb. 27, 2030 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that month.
Beginning on Feb. 27, 2020, the notes will be redeemed at par plus the contingent payment if each index closes at or above the initial level on any quarterly redemption date.
If the notes are not called and the worst-performing index finishes above its threshold level, 50% of its initial level, the payout at maturity will be par plus 2% for each 1% by which the final level of the worst-performing index is greater than its threshold level.
If the worst-performing index finishes below its threshold level, investors will lose 2% for each 1% by which the final level of the worst-performing index is less than its threshold level. There is no minimum payment at maturity.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable cannon securities
|
| Underlying indexes: | Russell 2000 and Euro Stoxx 50
|
| Amount: | $1,025,000
|
| Maturity: | Feb. 27, 2030
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| Coupon: | 7% per year, payable monthly if both indexes close at or above their coupon barrier levels on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If worst-performing index finishes above threshold level, par plus 2% for each 1% by which final level of worst-performing index is greater than threshold level; if worst-performing index finishes below threshold level, 2% loss for each 1% by which final level of worst-performing index is less than threshold level
|
| Call: | Beginning Feb. 27, 2020, notes will be redeemed at par plus contingent payment if each index closes at or above initial level on any quarterly redemption date
|
| Initial index levels: | 1,233.975 for Russell 2000 and 3,547.10 for Euro Stoxx 50
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| Coupon barrier levels: | 925.481 for Russell 2000 and 2,660.325 for Euro Stoxx 50; 75% of initial levels
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| Threshold levels: | 616.988 for Russell 200 and 1,773.55 for Euro Stoxx 50; 50% of initial levels
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| Pricing date: | Feb. 24
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| Settlement date: | Feb. 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61761JWR6
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