New Issue: Morgan Stanley sells $1.3 million callable range accrual notes on S&P

By Susanna Moon

Chicago, May 2 – Morgan Stanley Finance LLC priced $1.3 million of callable range accrual securities due April 28, 2032 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Interest accrues at an annual rate for each day that the index closes at or above the coupon barrier, 75% of the initial index level. The coupon will be 7% for first seven years, stepping up to 8% on April 28, 2024 and to 9% on April 28, 2029. Interest is payable quarterly.

The payout at maturity will be par unless the index falls by more than 50%, in which case investors will be fully exposed to any losses.

The notes will be callable at par on any interest payment date after one year.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley Finance LLC
Guarantor:	Morgan Stanley
Issue:	Callable range accrual securities
Underlying index:	S&P 500
Amount:	$1,299,000
Maturity:	April 28, 2032
Coupon:	For each day that index closes at or above 75% coupon barrier, 7% for first seven years, stepping up to 8% on April 28, 2024 and to 9% on April 28, 2029, payable quarterly
Price:	Par
Payout at maturity:	Par unless index falls by more than 50%, in which case full exposure to any losses
Call option:	At par on any interest payment date beginning April 28, 2018
Initial level:	2,387.45
Coupon barrier:	1,790.588, 75% of initial level
Trigger level:	1,193.725, 50% of initial level
Pricing date:	April 26
Settlement date:	April 28
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61768CHF7

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