Published on 12/26/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 contingent income autocalls on S&P, Russell
By Sarah Lizee
Olympia, Wash., Dec. 26 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due March 26, 2020 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 8.5% if each index closes above its 70% downside threshold on the observation date for 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 beginning March 21, 2019.
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 is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Russell 2000, S&P 500
|
| Amount: | $500,000
|
| Maturity: | March 26, 2020
|
| Coupon: | 8.5%, payable quarterly if each index closes at or above downside threshold on determination date for that quarter
|
| Price: | Par
|
| 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 beginning March 21, 2019
|
| Initial levels: | 2,416.62 for S&P, 1,292.086 for Russell
|
| Downside thresholds: | 1,691.634 for S&P, 904.460 for Russell; 70% of initial levels
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 27
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.125%
|
| Cusip: | 61768DSU0
|
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