Published on 5/2/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.3 million contingent income autocalls tied to Stoxx, Russell
By Wendy Van Sickle
Columbus, Ohio, May 2 – Morgan Stanley Finance LLC priced $2.3 million of contingent income autocallable securities due April 28, 2028 linked to the least performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 10.44% for the first year, then on a quarterly contingent basis if each index closes above its 50% downside threshold on the observation date for that quarter. In that event a coupon will also be paid for any previous quarter during which no contingent coupon has been paid.
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 a year.
The payout at maturity will be par unless either index finishes below its downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The guarantor is Morgan Stanley.
Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.
| 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: | Russell 2000, Euro Stoxx 50
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| Amount: | $2,296,000
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| Maturity: | April 28, 2028
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| Coupon: | 10.44%, payable quarterly for first year, then on a quarterly contingent basis if each index closes at or above downside threshold on determination date for that quarter, in which case a contingent coupon will also be paid for any previous quarter for which no coupon was paid
|
| 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
|
| Call: | At par if each index closes at or above initial level on any quarterly call date after a year
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| Initial levels: | 3,506.03 for Stoxx, 1,557.895 for Russell
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| Downside thresholds: | 1,753.015 for Stoxx, 778.948 for Russell; 50% of initial levels
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| Pricing date: | April 26
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| Settlement date: | April 30
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 3.35%
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| Cusip: | 61768CV95
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