Published on 8/27/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.02 million 11.24% worst-of autocall RevCons on three stocks
By Wendy Van Sickle
Columbus, Ohio, Aug. 27 – Morgan Stanley Finance LLC priced $1.02 million of 11.24% worst-of fixed coupon autocallable RevCons due March 2, 2020 linked to the least performing of the common stocks of Gilead Sciences, Inc., Splunk Inc. and UBS Group AG, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par plus the coupon if each stock closes at or above its redemption threshold on any quarterly determination date after six months. The call level will be 95% of the initial level for the first review date, stepping down to 90% on May 23, 2019, to 85% on Aug. 23, 2019 and to 80% on Nov. 25, 2019.
The payout at maturity will be par plus the coupon unless any stock finishes below its 70% downside threshold, in which case investors will receive a number of shares of the worst performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
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: | Worst-of fixed coupon autocallable RevCons
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| Underlying stocks: | Gilead Sciences, Inc., Splunk Inc. and UBS Group AG
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| Amount: | $1.02 million
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| Maturity: | March 2, 2020
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| Coupon: | 11.24%, payable quarterly
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, a number of shares of worst performing stock equal to $1,000 divided by the initial price
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| Call: | At par if each stock closes at or call level on any quarterly review date after six months; call level will be 95% of the initial level for the first review date, stepping down to 90% on May 23, 2019, to 85% on Aug. 23, 2019 and to 80% on Nov. 25, 2019
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| Initial levels: | $73.34 for Gilead, $107.73 for Splunk and CHF 15.31 for UBS
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| Downside thresholds: | $51.338 for Gilead, $75.411 for Splunk and CHF 10.717 for UBS; 70% of initial levels
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| Pricing date: | Aug. 23
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| Settlement date: | Aug. 30
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| Underwriter: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61768DCT0
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