Published on 5/17/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.77 million contingent income autocallables on three stocks
By Wendy Van Sickle
Columbus, Ohio, May 17 – Morgan Stanley Finance LLC priced $2.77 million of contingent income autocallable securities due Feb. 22, 2019 linked to the least-performing of Royal Dutch Shell plc, Citigroup Inc. and Whole Foods Market, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The notes will pay a contingent monthly coupon at an annual rate of 6.5% if the least-performing shares close at or above the 55% downside threshold level on the observation date for that month.
The notes will be called at par plus the contingent coupon if all three stocks close at or above redemption threshold on any monthly redemption date beginning Sept. 11. The redemption threshold will be 95% of the initial level through April 11, 2018, stepping down to 90% thereafter.
The payout at maturity will be par plus the final coupon unless any stock finishes below its downside threshold, in which case investors will lose 1% for each 1% decline of the least-performing stock.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Royal Dutch Shell plc, Citigroup Inc. and Whole Foods Market, Inc.
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| Amount: | $2,766,000
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| Maturity: | Feb. 22, 2019
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| Coupon: | 6.5% per year, payable each month that each stock closes at or above downside threshold level on determination date for that month
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| Price: | Par
|
| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to decline of worst performer
|
| Call: | At par plus contingent coupon if each stock closes at or above redemption threshold on any determination date beginning Sept. 11
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| Redemption threshold: | 95% of the initial level through April 11, 2018, stepping down to 90% thereafter
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| Initial share prices: | €25.315 for Royal Dutch, $60.70 for Citigroup, $37.03 for Whole Foods
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| Downside thresholds: | €13.923 for Royal Dutch, $33.385 for Citigroup, $20.367 for Whole Foods; 55% of initial share prices
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| Pricing date: | May 12
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| Settlement date: | May 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61768CJP3
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