By Susanna Moon
Chicago, Jan. 25 – Morgan Stanley Finance LLC priced $3.92 million of autocallable step-up notes due Jan. 29, 2019 linked to the worse performing of the SPDR S&P Bank exchange-traded fund and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be called at par of $10 plus an annualized call premium of 13% if each underlying component closes at or above the initial level on any of the first three semiannual determination dates.
If each underlying component finishes above its initial level, the payout at maturity will be $1,260 for each $1,000 principal amount.
If either component falls but each component finishes above its 70% downside threshold, the payout will be $1,050 per $1,000 of notes.
Otherwise, investors will be fully exposed to any losses of the worse performing component.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Autocallable step-up notes
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| Underlyings: | SPDR S&P Bank ETF and the Russell 2000 index
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| Amount: | $3.92 million
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| Maturity: | Jan. 29, 2019
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus 13% per year if each component closes at or above initial level on any of the first three semiannual determination dates
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| Payout at maturity: | If each underlying component gains, par plus 26%; if either component falls but by no more than 30%, par plus 5%; otherwise, full exposure to any losses of the worse performing component
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| Initial levels: | $42.87 for bank fund and 1,351.848 for Russell
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| Downside thresholds: | $30.009 for bank fund and 946.294 for Russell, 70% of initial levels
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| Pricing date: | Jan. 20
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| Settlement date: | Jan. 27
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| Underwriter: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
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| Cusip: | 61768CEC7
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