Published on 10/8/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.52 million contingent income autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 8 – Morgan Stanley Finance LLC priced $1.52 million of contingent income autocallable securities due Sept. 29, 2028 linked to the worse performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.2% if each index closes at or above its coupon threshold, 75% of 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 a year.
The payout at maturity will be par unless either underlying index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Euro Stoxx 50, S&P 500 and Russell 2000
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| Amount: | $1,523,000
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| Maturity: | Sept. 29, 2028
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| Coupon: | 8.2%, payable quarterly if each index closes at or above coupon threshold on review date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above 50% downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
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| Call: | At par if each index closes at or above its initial level on any quarterly call date after one year
|
| Initial levels: | 2,905.97 for S&P, 3,433.15 for Stoxx, 1,691.608 for Russell
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| Coupon thresholds: | 2,574.863 for S&P, 2,179.478 for Stoxx, 1,268.706 for Russell, 75% of initial levels
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| Downside thresholds: | 1,457.78 for S&P, 1,709.89 for Stoxx, 854.403 for Russell, 50% of initial levels
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768DEK7
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