By Sarah Lizee
Olympia, Wash., Oct. 11 – Morgan Stanley Finance LLC priced $1.08 million of 0% jump securities with autocallable feature due Oct. 7, 2022 linked to the worst performing of the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be automatically called at par plus 9.6% per year if each index closes at or above its call level on either annual determination date. The call level will be 100% of the initial level for the first determination date and 95% of the initial level on the final determination date.
If the notes are not called and the final level of each index is greater than or equal to 90% of its initial level, the payout at maturity will be par plus 28.8%.
If the final level of the worst performing index is less than 90% of its initial level but greater than or equal to its downside threshold level, 70% of its initial level, the payout will be par.
If the final level of either index is less than its downside threshold level, investors will lose 1% for every 1% the lesser-performing index declines from its initial level.
Morgan Stanley & Co. LLC is the underwriter.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Jump securities with autocallable feature
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Underlying indexes: | Dow Jones industrial average and Russell 2000 index
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Amount: | $1,075,000
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Maturity: | Oct. 7, 2022
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Coupon: | 0%
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Price: | Par
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Call: | Automatically called at par plus 9.6% per year if each index closes at or above its call level on either annual determination date; call level will be 100% of the initial level for the first determination date and 95% of the initial level on the final determination date
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Payout at maturity: | If the notes are not called and the final level of each index is greater than or equal to 90% of its initial level, par plus 28.8%; if the final level of the worst performing index is less than 90% of its initial level but greater than or equal to its downside threshold level, par; if the final level of either index is less than its downside threshold level, 1% loss for every 1% the lesser-performing index declines from its initial level
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Initial levels: | 26,573.72 for Dow, 1,500.702 for Russell
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Downside thresholds: | 18,601.604 for Dow, 1,050.491 for Russell; 70% of initial levels
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Pricing date: | Oct. 4
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Settlement date: | Oct. 9
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.25%
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Cusip: | 61769HB95
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