Published on 4/1/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million contingent income autocallables linked to four oil and gas stocks
Chicago, April 1 – Morgan Stanley Finance LLC priced $1 million of contingent income autocallable securities due March 27, 2023 linked to the worst-performing of the common units representing limited partner interests of MPLX LP., Enterprise Products Partners LP, Energy Transfer LP and Plains All American Pipeline, LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
If each stock closes at or above its coupon threshold level, 65% of its initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 14%.
Beginning Sept. 26, the notes will be called at par if each stock closes at or above its initial share price on any quarterly determination date.
The payout at maturity will be par plus any coupon unless any stock finishes below its downside threshold level, 50% of its initial share price, in which case investors will lose 1% for every 1% that the least-performing stock declines from its initial share price.
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 stocks: | MPLX LP., Enterprise Products Partners LP, Energy Transfer LP and Plains All American Pipeline, LP
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| Amount: | $1 million
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| Maturity: | March 27, 2023
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| Coupon: | 14% per year, payable quarterly if each stock closes at or above coupon threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus any coupon unless any stock finishes below downside threshold level, in which case 1% loss for every 1% that least-performing stock declines from initial share price
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| Call: | Beginning Sept. 26, automatically at par if each stock closes at or above initial share price on any quarterly determination date
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| Initial share prices: | $33.74 for MPLX, $29.09 for EPD, $15.38 for ET and $24.48 for PAA
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| Coupon thresholds: | $21.931 for MPLX, $18.909 for EPD, $9.997 for ET and $15.912 for PAA; 65% of initial share prices
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| Downside thresholds: | $16.87 for MPLX, $14.545 for EPD, $7.69 for ET and $12.24 for PAA; 50% of initial share prices
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| Pricing date: | March 22
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| Settlement date: | March 27
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4.25%
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| Cusip: | 61768D2V6
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