Published on 9/7/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $769,000 of contingent income autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 7 – Morgan Stanley Finance LLC priced $769,000 of contingent income autocallable securities due Sept. 1, 2033 linked to the worst performing of the S&P 500 index, the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 9% for the first three years after which they will pay a contingent coupon at an annualized rate of 9% if each index closes above its initial level on the observation date.
After 5.5 years, the notes will be automatically called at par if all three indexes close at or above their initial levels on any quarterly observation date.
The payout at maturity will be par plus the final coupon unless any index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Autocallable contingent income securities
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| Underlying indexes: | S&P 500 index, Euro Stoxx 50 index and Russell 2000 index
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| Amount: | $769,000
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| Maturity: | Sept. 1, 2033
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| Coupon: | 9% annualized, payable quarterly for the first three years, then payable quarterly if each index closes at or above initial level on related observation date
|
| Price: | Par
|
| Payout at maturity: | If all three indexes finish above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call: | After 5.5 years, automatically at par if all three indexes close at or above initial level on any quarterly call date
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| Initial levels: | 2,897.52 for S&P, 3,447.57 for Stoxx and 1,728.422 for Russell
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| Downside thresholds: | 1,448.76 for S&P, 1,723.785 for Stoxx and 864.211 for Russell; 50% of initial levels
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| Pricing date: | Aug. 28
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| Settlement date: | Aug. 31
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
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| Cusip: | 61768DAT2
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