Published on 9/27/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.02 million 9.25% fixed, contingent income autocalls on indexes
By Susanna Moon
Chicago, Sept. 27 – Morgan Stanley Finance LLC priced $1.02 million of contingent income autocallable securities due Sept. 27, 2021 linked to the worse performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.
Interest will be fixed at 9.25% for the first two years, payable quarterly. After that, the notes will pay a contingent quarterly coupon at an annualized rate of 9.25% if each index closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any review date after two years.
The payout at maturity will be par unless either underlying index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
The notes are guaranteed by Morgan Stanley.
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 indexes: | Euro Stoxx 50 and Russell 2000
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| Amount: | $1,015,000
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| Maturity: | Sept. 25, 2028
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| Coupon: | 9.25%, payable quarterly, for two years; after that, 9.25% annualized, payable quarterly, if each index closes at or above 60% coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above 60% downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
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| Call: | At par if each index closes at or above its initial level on any quarterly call date beginning September 2020
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| Initial levels: | 3,403.12 for Stoxx and 1,720.184 for Russell
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| Downside thresholds: | 2,041.872 for Stoxx and 1,032.11 for Russell, 60% of initial levels
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| Pricing date: | Sept. 20
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| Settlement date: | Sept. 25
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.35%
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| Cusip: | 61768DEY7
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