Published on 2/23/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4.7 million contingent income autocallables on three indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 23 – Morgan Stanley Finance LLC priced $4.7 million of contingent income autocallable securities due Feb. 27, 2032 linked to the worst performing of the S&P 500 index, the Euro Stoxx 50 index and the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The coupon will be fixed at 9% per year for the first three years, payable quarterly. After that, if each index closes at or above its initial level on a quarterly observation date, the notes will pay a contingent quarterly coupon at an annual rate of 9% for that quarter and for any previous quarter for which no coupon was paid.
After a 5.5-year non-call period, the notes will be called at par if each index closes at or above its initial level on a quarterly observation date.
The payout at maturity will be par unless any index finishes below its 50% 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
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | S&P 500, Euro Stoxx 50, Nikkei 225
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| Amount: | $4,698,000
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| Maturity: | Feb. 27, 2032
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| Coupon: | 9% per year for first three years, payable quarterly; then, if each index closes at or above its initial level on a quarterly observation date, notes will pay a contingent quarterly coupon at annual rate of 9% for that quarter and any previous quarter for which no coupon was paid
|
| Price: | Par
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| Payout at maturity: | Par unless any index finishes below 50% downside threshold, in which case full exposure to any losses of the worst performing index
|
| Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly determination date after 5.5 years
|
| Initial levels: | 2,351.16 for S&P, 3,308.81 for Stoxx and 19,234.62 for Nikkei
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| Downside thresholds: | 1,175.58 for S&P. 1,654.405 for Stoxx and 9,617.31 for Nikkei; 50% of initial levels
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| Pricing date: | Feb. 17
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| Settlement date: | Feb. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768CEH6
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