Published on 12/10/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.16 million contingent income autocalls tied to indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 10 – Morgan Stanley Finance LLC priced $1.16 million of contingent income autocallable securities due Dec. 9, 2026 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index, the MSCI Emerging Markets index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a one-time coupon of 3% on March 7, 2019. After that, they will pay a contingent coupon at an annualized rate of 9% if each index closes above its coupon threshold, 70% of its initial level, on a quarterly observation date.
The notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless any index finishes below its 60% downside threshold level, 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
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying assets: | Russell 2000 index, Nasdaq-100 index, MSCI Emerging Markets index and Euro Stoxx 50 index
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| Amount: | $1,156,000
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| Maturity: | Dec. 9, 2026
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| Coupon: | 3%, payable once on March 7, 2019, after that, contingent coupon at 9% annual rate if each index closes above coupon threshold on a quarterly observation date
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; otherwise, 1% loss for each 1% decline of worst performing index
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| Call: | At par if each index closes at or above its initial level on any quarterly determination date Initial levels: | 1,480.751 for Russell, 6,795.213 for Nasdaq, 1,014.25 for Emerging Markets and 3,189.25 for Stoxx
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| Coupon thresholds: | 1,036.526 for Russell, 4,756.649 for Nasdaq, 709.975 for Emerging Markets and 2,232.475 for Stoxx, 70% of initial levels
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| Downside thresholds: | 888.451 for Russell, 4,077.128 for Nasdaq, 608.55 for Emerging Markets and 1,913.55 for Stoxx, 60% of initial levels
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| Pricing date: | Dec. 4
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| Settlement date: | Dec. 7
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| Underwriter: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61768DTM7
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