By Wendy Van Sickle
Columbus, Ohio, Oct. 31 – Morgan Stanley Finance LLC priced $735,000 contingent income autocallable securities due Oct. 29, 2032 linked to the least performing of the Euro Stoxx 50 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
For the first 3.5 years, the notes will pay a coupon at an annual rate of 8% a year.
Thereafter, the notes will pay a contingent coupon at the rate of 8% per year if each index closes at or above its initial level, on the determination date for that quarter. The notes will also pay any previously unpaid quarterly coupon in that event.
After seven years, the notes will be automatically called at par plus the related contingent coupon if each index closes at or above its initial level on any quarterly redemption determination date.
The payout at maturity will be par unless the final level of any index is less than its 50% downside threshold level, in which case investors will lose 1% for each 1% that the least-performing index declines from its initial level.
Morgan Stanley & Co. LLC Morgan Stanley Smith Barney LLC are the agents.
| 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: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $735,000
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| Maturity: | Oct. 29, 2032
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| Coupon: | 8% per year, payable quarterly for the first 3.5 years, then 8% per year payable quarterly if each index closes at or above initial level on review date for that quarter plus any previously unpaid quarterly coupon
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below downside threshold level, in which 1% loss for every 1% that least-performing index finishes below initial level
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| Call: | After seven years, automatically at par plus contingent coupon if each index closes at or above initial level on any quarterly review date
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| Initial index levels: | 2,560.40 for S&P 500, 1,497.46 for Russell 2000 and 3,637.20 for Euro Stoxx 50
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| Downside thresholds: | 1,280.20 for S&P 500, 748.730 for Russell 2000 and 1,818.60 for Euro Stoxx 50; 50% of initial levels
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| Pricing date: | Oct. 26
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| Settlement date: | Oct. 31
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| Agents: | Morgan Stanley & Co. LLC and Morgan Stanley Smith Barney LLC
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| Fees: | 3%
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| Cusip: | 61768CRN9
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