A story in the Feb. 1 edition of the Prospect News Structured Products Daily incorrectly described the payout at maturity of Morgan Stanley Finance LLC’s contingent income autocallable securities due May 1, 2020 linked to the lesser performing of the Russell 2000 index and the S&P 500 index. A corrected version follows.
By Sarah Lizee
Olympia, Wash., Feb. 1 – Morgan Stanley Finance LLC priced $1.29 million of contingent income autocallable securities due May 1, 2020 linked to the lesser 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 are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if each index closes at or above its barrier level, 70% of its initial level, on the determination date for that quarter.
Beginning May 2, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless either index ever finishes below its barrier level on any day during the life of the notes, in which case investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $1,293,000
|
| Maturity: | May 1, 2020
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| Coupon: | 8% per year, payable quarterly if each index closes at or above barrier level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index ever finishes below its barrier level on any day during the life of the notes, in which case 1% loss for every 1% that lesser-performing index declines from its initial level
|
| Call: | Beginning May 2, automatically at par if each index closes at or above initial level on any quarterly determination date
|
| Initial index levels: | 1,473.536 for Russell 2000 and 2,643.85 for S&P 500
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| Barrier levels: | 1,031.475 for Russell 2000 and 1,850.695 for S&P 500; 70% of initial levels
|
| Pricing date: | Jan. 28
|
| Settlement date: | Jan. 31
|
| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.125%
|
| Cusip: | 61768DXM2
|
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