Published on 12/27/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 jump autocalls on S&P, Dow, Nasdaq, Russell
By Susanna Moon
Chicago, Dec. 27 – Morgan Stanley Finance LLC priced $500,000 of jump securities with autocallable feature due Dec. 2, 2026 linked to the lesser performing of the S&P 500 index, the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a one-time coupon of 2.75% on March 4, 2019.
The notes will be called at par plus an annual call premium of 7.75% if each index closes at or above its 97% call threshold on any quarterly determination date.
If each index closes at or above its initial level, the payout at maturity will be $1,620 per $1,000 principal amount.
If any index falls by up to its 85% downside threshold, the payout will be par.
Otherwise, 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: | Jump securities with autocallable feature
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
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| Amount: | $500,000
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| Maturity: | Dec. 2, 2026
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| Coupon: | 2.75%, payable on March 4, 2019
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| Price: | Par
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| Payout at maturity: | If each index gains, par plus 62%; if any index falls by up to 15%, par; otherwise, 1% loss per 1% decline of worst performing index
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| Call: | At par plus 7.75% annualized if each index closes at or above 97% call level on any quarterly determination date
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| Initial levels: | 2,682.17 for S&P, 1,492.855 for Russell, 6,701.036 for Nasdaq and 24,748.73 for Dow
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| Downside thresholds: | 2,279.845 for S&P, 1,268.927 for Russell, 5,695.881 for Nasdaq and 21,036.421 for Dow, 85% of initial levels
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| Pricing date: | Nov. 27
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| Settlement date: | Nov. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.5%
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| Cusip: | 61768DRS6
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