By Susanna Moon
Chicago, Jan. 2 – Morgan Stanley Finance LLC priced $1 million of 0% jump securities with autocallable feature due Dec. 27, 2022 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will be called at par plus an annualized call premium of 10.55% if the index closes at or above the redemption threshold on any semiannual determination date after one year. The call level will be 100% of the initial level on the first determination date, stepping up by 2.5% on each subsequent year.
If the index closes at or above its initial level, the payout at maturity will be $1,527.50 per $1,000 principal amount.
If the index falls by up to its 65% downside threshold, the payout will be $1,000 per $1,000 of notes.
Otherwise, investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Jump securities with autocallable feature
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| Underlying index: | Russell 2000 index
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| Amount: | $1 million
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| Maturity: | Dec. 27, 2022
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus 10.55% annualized if index closes at or above redemption threshold on any semiannual determination date; call threshold is 100% on Dec. 24, 2018, stepping up by 2.5% each subsequent year to final level of 120% on final date
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| Payout at maturity: | If index gains, par plus 52.75%; if index falls by up to 35%, par; otherwise, 1% loss per 1% decline
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| Initial index level: | 1,547.11
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| Barrier level: | 1,005.62, 65% of initial level
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| Pricing date: | Dec. 21
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| Settlement date: | Dec. 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | None
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| Cusip: | 61768CWR4
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