Published on 11/2/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 contingent income autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 2 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Oct. 31, 2033 linked to the worst performing of the Russell 2000 index, the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual fixed rate of 8% for the first four years, then payable contingently if each index closes at or above its coupon threshold, 50% 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 quarterly review date after 5.5 years months.
The payout at maturity will be par unless any underlying index finishes below 50% of its initial level, 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: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 index, Euro Stoxx 50 index and S&P 500 index
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| Amount: | $500,000
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| Maturity: | Oct. 31, 2033
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| Coupon: | 8%, payable quarterly at fixed rate for first four years, then payable if each index closes at or above coupon threshold on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above 50% of initial level, 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 after 5.5 years
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| Initial levels: | 1,483.821 for Russell, 3,134.89 for Stoxx, 2,658.69 for S&P
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| Coupon thresholds: | 741.911 for Russell, 1,567.445 for Stoxx, 1,329.345 for S&P, 50% of initial levels
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| Pricing date: | Oct. 26
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768DGE9
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