Published on 12/21/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $5.71 million contingent income autocalls tied to indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 21 – Morgan Stanley Finance LLC priced $5.71 million of contingent income autocallable securities due Dec. 20, 2022 linked to the worst performing of the Tokyo Stock Price index, 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 9.1% if each index closes at or above its 75% coupon threshold on the determination date 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 call review date after six months.
The payout at maturity will be par unless either index finishes below its 70% downside threshold, 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 with distribution through Morgan Stanley Wealth Management.
| 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: | Tokyo Stock Price, Euro Stoxx 50, Russell 2000
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| Amount: | $5.71 million
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| Maturity: | Dec. 20, 2022
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| Coupon: | 9.1% per year, payable quarterly if each index closes at or above coupon threshold on determination date that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
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| Call: | At par if each index closes at or above initial level on any quarterly call date beginning June 20, 2018
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| Initial levels: | 1,793.47 for Topix, 1,530.425 for Russell and 3,560.53 for Stoxx
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| Coupon thresholds: | 1,345.103 for Topix, 1,147.819 for Russell and 2,670.398 for Stoxx, 75% of initial levels
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| Downside thresholds: | 1,255.429 for Topix, 1,071.298 for Russell and 2,492.371 for Stoxx, 70% of initial levels
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| Pricing date: | Dec. 15
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| Settlement date: | Dec. 20
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 3%
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| Cusip: | 61768CVG9
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