Published on 3/20/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $13.62 million trigger callable contingent yield notes on S&P, Russell, Stoxx
By Wendy Van Sickle
Columbus, Ohio, March 20 – Morgan Stanley Finance LLC priced $13.62 million of trigger callable contingent yield notes with daily coupon observation due March 18, 2021 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.15% if each index’s closing level remains at or above its coupon barrier, 70% of its initial level, on each day during that quarter.
Beginning Sept. 18, 2018, the notes will be callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley and UBS Financial Services Inc. are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $13,620,920
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| Maturity: | March 18, 2021
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| Coupon: | 9.15% per year, payable quarterly if each index closes at or above its coupon barrier each day that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | At par on each quarterly observation date starting Sept. 18, 2018
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| Initial index levels: | 3,390.98 for Stoxx, 1,584.311 for Russell and 2,749.48 for S&P
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| Coupon barriers: | 2,373.69 for Stoxx, 1,109.018 for Russell and 1,924.64 for S&P; 70% of initial levels
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| Downside thresholds: | 2,034.59 for Stoxx, 950.587 for Russell and 1,649.69 for S&P; 60% of initial levels
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| Pricing date: | March 15
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| Settlement date: | March 20
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| Agents: | Morgan Stanley and UBS Financial Services Inc.
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| Fees: | 1.5%
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| Cusip: | 61768P371
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