Published on 2/16/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.65 million trigger autocallable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 16 – Morgan Stanley Finance LLC priced $2.65 million of trigger autocallable contingent yield notes due Feb. 16, 2028 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annual rate of 9% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
After one year, the notes will be called at par if each index closes at or above its initial level on any quarterly observation date.
If the final level of each index is greater than or equal to its 70% coupon barrier, the payout will be par plus the contingent coupon.
The payout will be par if any index finishes below its coupon barrier but each finishes above its 50% downside threshold. Otherwise, investors will lose 1% for each 1% decline of the least-performing index.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000, S&P 500, Euro Stoxx 50
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| Amount: | $2.65 million
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| Maturity: | Feb. 16, 2028
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| Coupon: | 9%, payable quarterly if each index closes at or above coupon barrier on observation date
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| Price: | Par of $10
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| Call: | After one year, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
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| Payout at maturity: | If each index finishes at or above coupon barrier, par plus coupon; par if any index finishes below coupon barrier but above downside threshold; otherwise, 1% loss for each 1% decline of least-performing index
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| Initial index levels: | 1,477.836 for Russell, 2,619.55 for S&P 500 and 3,325.99 for Euro Stoxx
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| Coupon barriers: | 1,034.485 for Russell, 1,833.69 for S&P 500 and 2,328.19 for Euro Stoxx; 70% of initial levels
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| Downside thresholds: | 738.918 for Russell, 1,309.78 for S&P 500 and 1,663.00 for Euro Stoxx; 50% of initial levels
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| Pricing date: | Feb. 9
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| Settlement date: | Feb. 16
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768M766
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