Published on 8/27/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $6.31 million 9.53% contingent income autocalls on indexes, fund
By Wendy Van Sickle
Columbus, Ohio, Aug. 27 – Morgan Stanley Finance LLC priced $6.31 million of contingent income autocallable securities due Aug. 27, 2020 linked to the Russell 2000 index, the Nasdaq-100 index and the SPDR Dow Jones industrial average ETF Trust, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.53% if each underlying asset closes at or above its 80% coupon barrier on the observation date for that quarter.
The notes will be called at par if each underlying asset closes at or above its initial level on any review date.
The payout at maturity will be par unless any underlying asset finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index or fund.
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 assets: | Russell 2000 index, Nasdaq-100 index and SPDR Dow Jones industrial average ETF Trust
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| Amount: | $6,307,000
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| Maturity: | Aug. 27, 2020
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| Coupon: | 9.53% annualized, payable quarterly if each asset closes at or above 80% coupon barrier on review date for that quarter
|
| Price: | Par
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| Payout at maturity: | If any asset finishes at or above 80% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index or fund
|
| Call: | At par if each underlying asset closes at or above its initial level on any quarterly call date
|
| Initial levels: | 1,717.051 for Russell, 7,413.838 for Nasdaq and $256.49 for fund
|
| Coupon barriers: | 1,373.641 for Russell, 5,931.07 for Nasdaq and $205.192 for fund, 80% of initial levels
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| Downside thresholds: | 1,373.641 for Russell, 5,931.07 for Nasdaq and $205.192 for fund, 80% of initial levels
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| Pricing date: | Aug. 23
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| Settlement date: | Aug. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
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| Cusip: | 61768DCS2
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