Published on 11/28/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.15 million trigger callable notes on indexes
By Marisa Wong
Morgantown, W.Va., Nov. 28 – Morgan Stanley Finance LLC priced $3.15 million of trigger callable contingent yield notes due Nov. 19, 2020 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 are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annualized rate of 9% if each index closes at or above its 70% coupon barrier on each trading day for that quarter.
After six months, the notes are callable at par on any quarterly determination date.
The payout at maturity will be par plus the contingent coupon, if any, unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
|
| Amount: | $3,145,000
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| Maturity: | Nov. 19, 2020
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| Coupon: | 9% per year, payable quarterly if each index closes at or above 70% coupon barrier on each trading day for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, full exposure to decline of worst performing index
|
| Call option: | At par on any quarterly observation date after six months
|
| Initial levels: | 2,564.62 for S&P, 1,464.095 for Russell and 3,545.72 for Stoxx
|
| Coupon barriers: | 1,795.234 for S&P, 1,024.867 for Russell and 2,482.004 for Stoxx; 70% of initial levels
|
| Downside thresholds: | 1,538.772 for S&P, 878.457 for Russell and 2,127.432 for Stoxx; 60% of initial levels
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| Strike date: | Nov. 15
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| Pricing date: | Nov. 16
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| Settlement date: | Nov. 21
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| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | UBS Financial Services Inc.
|
| Fees: | 1%
|
| Cusip: | 61768K422
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