New Issue: Morgan Stanley prices $3.29 million callable fixed-income notes on indexes

By Wendy Van Sickle

Columbus, Ohio, Nov. 29 – Morgan Stanley Finance LLC priced $3.29 million of callable fixed-income securities due May 28, 2020 linked to the least performing of the Russell 2000 index, 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 coupon at a rate of 7.3% per year.

After six months, the notes are callable quarterly at par plus the coupon.

If the notes are not called and each index finishes at or above its 75% barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley Finance LLC
Guarantor:	Morgan Stanley
Issue:	Callable fixed-income securities
Underlying indexes:	Euro Stoxx 50, Russell 2000 and S&P 500
Amount:	$3,285,000
Maturity:	May 28, 2020
Coupon:	7.3% per year, payable quarterly
Price:	Par
Payout at maturity:	If each index finishes at or above barrier level, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
Call option:	After six months, quarterly at par plus the coupon
Initial levels:	1,516.762 for Russell, 2,597.08 for S&P, 3,562.65 for Stoxx
Barrier levels:	1,137.572 for Russell, 1,947.81 for S&P and 2,671.99 for Stoxx; 75% of initial levels
Pricing date:	Nov. 22
Settlement date:	Nov. 28
Agent:	Morgan Stanley & Co. LLC
Fees:	1.5%
Cusip:	61768CUS4

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