Published on 11/29/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $7.78 million contingent income autocalls on funds
By Sarah Lizee
Olympia, Wash., Nov. 29 – Morgan Stanley Finance LLC priced $7.78 million of contingent income autocallable securities due Dec. 2, 2020 linked to the SPDR S&P Biotech exchange-traded fund, the SPDR S&P Bank exchange-traded fund and the Technology Select Sector SPDR fund, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 15% if each underlying asset closes at or above its 68.57% coupon barrier on the observation date for that quarter.
The notes will be called at par if each asset closes at or above its initial level on any review date.
The payout at maturity will be par unless either underlying asset finishes below its 68.57% downside threshold, in which case investors will be fully exposed to any losses of the worst performing fund.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Autocallable contingent income securities
|
| Underlying assets: | SPDR S&P Biotech ETF, SPDR S&P Bank ETF, Technology Select Sector SPDR fund
|
| Amount: | $7,781,000
|
| Maturity: | Dec. 2, 2020
|
| Coupon: | 15% annualized, payable quarterly if each asset closes at or above 68.57% coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each asset finishes at or above 68.57% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing fund
|
| Call: | At par if each asset closes at or above its initial level on any quarterly call date
|
| Initial levels: | $77.97 for biotech fund, $43.37 for bank fund, $65.66 for technology fund
|
| Downside thresholds: | $53.464 for biotech fund, $29.739 for bank fund, $45.023 for technology fund, 68.57% of initial levels
|
| Pricing date: | Nov. 27
|
| Settlement date: | Nov. 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.75%
|
| Cusip: | 61768DRT4
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
