By Wendy Van Sickle
Columbus, Ohio, Jan. 7 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due Jan. 3, 2020 linked to the worst performing of the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 12.25% if each index closes above its 70% downside threshold level on the observation date.
Beginning April 2, 2019, the notes will be automatically called at par if both 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 either index finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worse 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: | Autocallable contingent income securities
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| Underlying indexes: | Nasdaq-100 and Russell 2000
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| Amount: | $1 million
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| Maturity: | Jan. 3, 2020
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| Coupon: | 12.25% annualized, payable quarterly if each index closes at or above downside threshold on observation date
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| Price: | Par
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| Payout at maturity: | If each index finishes above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index
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| Call: | Automatically at par if both indexes close at or above initial level on any quarterly call date beginning April 2, 2019
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| Initial levels: | 1,337.923 for Russell, 6,285.267 for Nasdaq
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| Downside thresholds: | 936.546 for Russell, 4,399.687 for Nasdaq; 70% of initial levels
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| Pricing date: | Dec. 28
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| Settlement date: | Jan. 3
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.625%
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| Cusip: | 61768DSF3
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