Published on 5/18/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.9 million contingent income autocalls tied to S&P, Dow, Russell
By Wendy Van Sickle
Columbus, Ohio, May 18 – Morgan Stanley Finance LLC priced $1.9 million of contingent income autocallable securities due May 19, 2028 linked to the least performing of the Russell 2000 index, the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 7.4% if each index closes above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any call review date after a year.
The payout at maturity will be par unless any index finishes below its downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The guarantor is Morgan Stanley.
Morgan Stanley & Co. LLC 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: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000, S&P 500, Dow Jones industrial average
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| Amount: | $1,901,000
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| Maturity: | May 19, 2028
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| Coupon: | 7.4%, payable on a quarterly contingent basis if each index closes at or above coupon barrier on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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| Call: | At par if each index closes at or above initial level on any quarterly call date after a year
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| Initial levels: | 24,768.93 for Dow, 2,722.46 for S&P, 1,616.367 for Russell
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| Coupon barriers: | 18,576.698 for Dow, 2,041.845 for S&P, 1,212.275 for Russell; 75% of initial levels
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| Downside thresholds: | 12,384.465 for Dow, 1,361.23 for S&P, 808.184 for Russell; 50% of initial levels
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| Pricing date: | May 16
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| Settlement date: | May 21
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 3.5%
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| Cusip: | 61768CX85
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