Published on 8/2/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $832,000 contingent income autocallables tied to indexes
By Susanna Moon
Chicago, Aug. 2 – Morgan Stanley Finance LLC priced $832,000 of contingent income callable securities due July 29, 2032 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10% if each index closes at or above its initial level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date after five years.
The payout at maturity will be par plus the contingent coupon unless any index finishes below its 50% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $832,000
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| Maturity: | July 29, 2032
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| Coupon: | 10% annualized for each quarter that each index closes at or above initial level on observation date for quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each index finishes at or above 65% downside threshold; otherwise, 1% loss for each 1% decline of worst performing index
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| Call: | At par plus contingent payment if each index closes at or above initial level on any quarterly determination date beginning July 26, 2022
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| Initial index levels: | 2,477.83 for S&P, 1,442.279 for Russell and 3,491.19 for Stoxx
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| Downside thresholds: | 1,238.915 for S&P, 721.14 for Russell and 1,745.595 for Stoxx; 50% of initial levels
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| Pricing date: | July 26
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| Settlement date: | July 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 5%
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| Cusip: | 61768CMF1
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