Published on 8/1/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.43 million 9% fixed-to-contingent income autocalls on indexes
By Susanna Moon
Chicago, Aug. 1 – Morgan Stanley Finance LLC priced $1.43 million of contingent income autocallable securities due July 29, 2033 linked to the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.
The coupon will be fixed at 9% for the first three years. After that, the notes will pay a contingent quarterly coupon at an annual rate of 9% if each index closes at or above its initial level on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any review date after 5.5 years.
The payout at maturity will be par unless any underlying index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Autocallable contingent income securities
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $1,428,000
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| Maturity: | July 29, 2033
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| Coupon: | 9% for first three years; beginning in October 2021, 9% annualized, payable quarterly if each index closes at or above initial level on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If any index finishes at or above 50% 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 its initial level on any quarterly call date beginning Jan. 26, 2024
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| Initial levels: | 2,837.44 for S&P, 1,695.36 for Russell and 3,509.26 for Stoxx
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| Downside thresholds: | 1,418.72 for S&P, 847.68 for Russell and 1,754.63 for Stoxx, 50% of initial levels
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| Pricing date: | July 26
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| Settlement date: | July 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768C6K8
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