Published on 10/13/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 contingent income autocallables tied to two indexes
By Susanna Moon
Chicago, Oct. 13 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Oct. 4, 2022 linked to the least performing of the Euro Stoxx 50 index and the Russell 2000 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 6.4% if each index closes at or above its coupon barrier, 70% of 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 one year.
The payout at maturity will be par unless the either index finishes below its 55% downside threshold level, in which case investors will be fully exposed to any losses of the worse 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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| Gurantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 and Euro Stoxx 50
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| Amount: | $500,000
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| Maturity: | Oct. 4, 2022
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| Coupon: | 6.4% per year, payable quarterly if each index closes at or above coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below downside threshold, in which 1% loss for each 1% decline of worse performing index
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| Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly review date beginning Oct. 1, 2018
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| Initial index levels: | 3,594.85 for Stoxx, 1,490.861 for Russell
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| Coupon barriers: | 2,516.395 for Stoxx, 1,043.6027 for Russell; 70% of initial levels
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| Downside thresholds: | 1,977.168 for Stoxx, 819.974 for Russell; 55% of initial levels
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| Pricing date: | Sept. 29
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| Settlement date: | Oct. 4
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| Agents: | Morgan Stanley & Co. LLC and Morgan Stanley Smith Barney LLC
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| Fees: | 0.75%
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| Cusip: | 61768CQN0
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