Published on 12/28/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.16 million contingent income autocallables linked to indexes
By Devika Patel
Knoxville, Tenn., Dec. 28 – Morgan Stanley Finance LLC priced $1,156,000 of contingent income autocallable securities due Dec. 9, 2026 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index, the Euro Stoxx 50 index and the MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
A one-time fixed coupon payment of 3% will be paid on March 7, 2019 and the notes will pay a contingent monthly coupon at an annual rate of 9% if each index closes at or above its coupon threshold level, 70% of its initial level, on the determination date for that month.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date beginning on March 4, 2019.
The payout at maturity will be par plus the final coupon, if any, unless either index finishes below the 60% downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income auto-callable securities
|
| Underlying indexes: | Russell 2000, Nasdaq-100, Euro Stoxx 50 and MSCI Emerging Markets
|
| Amount: | $1,156,000
|
| Maturity: | Dec. 9, 2026
|
| Coupon: | A one-time fixed coupon payment of 3% on March 7, 2019 and a 9% annualized coupon for each quarter that each index closes at or above coupon threshold level on determination date for that quarter
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus contingent coupon, if any, if each index finishes at or above downside threshold level; otherwise, full exposure to any losses of worst performing index
|
| Call: | At par plus contingent payment if each index closes at or above initial level on any quarterly determination date beginning on March 4, 2019
|
| Initial levels: | 1,480.751 for Russell, 6,795.213 for Nasdaq, 3,189.25 for Stoxx and 1,014.25 for EM
|
| Coupon threshold levels: | 1,036.526 for Russell, 4,756.649 for Nasdaq, 2,232.475 for Stoxx and 709.975 for EM, 70% of initial levels
|
| Downside threshold levels: | 888.451 for Russell, 4,077.128 for Nasdaq, 1,913.55 for Stoxx and 608.55 for EM, 60% of initial levels
|
| Pricing date: | Dec. 4
|
| Settlement date: | Dec. 7
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.5%
|
| Cusip: | 61768DTM7
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
