Published on 4/26/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5 million trigger autocallable contingent yield notes on S&P, Stoxx
By Wendy Van Sickle
Columbus, Ohio, April 26 – Morgan Stanley Finance LLC priced $5 million of trigger autocallable contingent yield notes due April 28, 2027 linked to the lesser performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.55% if each index closes at or above its 70% coupon barrier on the observation date for that quarter.
After one year, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless either index finishes below its 50% downside threshold level, in which case investors will be fully exposed to the decline of the lesser-performing index.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the underwriters.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | S&P 500 and Euro Stoxx 50
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| Amount: | $5 million
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| Maturity: | April 28, 2027
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| Coupon: | 7.55%, payable quarterly if each index closes at or above coupon barrier level on observation date
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| Price: | Par of $10
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| Call: | Beginning April 23, 2018, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
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| Payout at maturity: | Par unless either index finishes below downside threshold level, in which case 1% loss for each 1% decline of the worse performing index
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| Initial levels: | 2,348.69 for S&P, 3,440.27 for Stoxx
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| Coupon barriers: | 1,644.08 for S&P, 2,408.19 for Stoxx, 70% of initial levels
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| Downside thresholds: | 1,174.35 for S&P, 1,720.14 for Stoxx, 50% of initial levels
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| Pricing date: | April 21
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| Settlement date: | April 28
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| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61766W337
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