By Angela McDaniels
Tacoma, Wash., Aug. 5 – Morgan Stanley priced $2.5 million of contingent income autocallable securities due July 31, 2029 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, if each index closes at or above its initial level on the valuation date for that month, investors will receive a contingent coupon at the rate of 8.1% per year plus any previously unpaid contingent coupons for any prior observation dates.
Beginning one year after issuance, the notes will be automatically redeemed at par plus the contingent coupon plus any previously unpaid contingent coupons if each index closes at or above its initial level on any quarterly redemption determination date.
If the notes are not called and each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par, and investors will also receive the final contingent coupon and any previously unpaid contingent coupons if each index finishes at or above its initial level.
If the notes are not called and any index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $2.5 million
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| Maturity: | July 31, 2029
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| Coupon: | Every month, if each index closes at or above initial level on valuation date for that month, notes pay contingent coupon at rate of 8.1% per year plus any previously unpaid contingent coupons for any prior observation dates
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above initial level, par plus final contingent coupon plus any previously unpaid contingent coupons; if each index finishes below initial level but at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of worst-performing index
|
| Call: | Beginning one year after issuance, notes will be automatically redeemed at par plus contingent coupon plus any previously unpaid contingent coupons if each index closes at or above initial level on any quarterly redemption determination date
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| Initial index levels: | 1,930.67 for S&P 500, 1,120.068 for Russell 2000 and 3,155.51 for Euro Stoxx 50
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| Downside thresholds: | 965.335 for S&P 500, 560.034 for Russell 2000 and 1,557.755 for Euro Stoxx 50; 50% of initial levels
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| Pricing date: | July 31
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| Settlement date: | Aug. 5
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61761JSE0
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