By Wendy Van Sickle
Columbus, Ohio, March 22 – Morgan Stanley Finance LLC priced $15.96 million of contingent income autocallable securities due March 21, 2019 linked to the worst performing of the Consumer Discretionary Select Sector SPDR fund, the Energy Select Sector SPDR fund and the Healthcare Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
Investors will receive a contingent quarterly coupon at the annual rate of 10.68% if each ETF closes above its downside threshold level, 75% of the initial share price, on the related observation date.
The notes will be automatically redeemed at par plus the coupon on any quarterly redemption date starting on June 22, 2017 if each fund closes above its initial level on the quarterly related determination date.
The payout at maturity will be par plus any contingent coupon unless any of the ETFs closes below its 75% threshold level, in which cases investors will be fully exposed to the losses of the worst performing fund.
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 ETF’s: | Consumer Discretionary Select Sector SPDR fund, Energy Select Sector SPDR fund and Healthcare Select Sector SPDR fund
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| Amount: | $15,959,000
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| Maturity: | March 21, 2019
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| Coupon: | 10.68% per year, payable each quarter that each ETF closes at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If final share price of least performing ETF is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to decline of worst performer
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| Call: | At par plus contingent coupon if each ETF closes at or above initial share price on any quarterly determination date
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| Initial share prices: | $65.52 for Consumer Discretionary, $52.36 for Energy, $56.37 for Healthcare
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| Downside thresholds: | $87.36 for Consumer Discretionary, $69.80 for Energy, $75.16 for Healthcare; 75% of initial share prices
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| Pricing date: | March 17
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| Settlement date: | March 22
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 1.75%
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| Cusip: | 61768CGK7
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