By Wendy Van Sickle
Columbus, Ohio, July 3 – Morgan Stanley Finance LLC priced $1.17 million of contingent income autocallable securities due July 6, 2020 linked to the worse performing of the VanEck Vectors Gold Miners exchange-traded fund and the SPDR S&P Regional Banking exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7% if each fund closes above its downside threshold, 53.85% of the initial level, on the observation date for that quarter.
The notes will be redeemed at par plus the coupon if each fund closes above its initial level on any quarterly redemption date beginning Jan. 6, 2018.
The payout at maturity will be par plus any contingent coupon unless either fund closes below its 53.85% threshold, in which cases investors will be fully exposed to the losses of the worse performing fund.
The notes will be guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying funds: | VanEck Vectors Gold Miners exchange-traded fund and SPDR S&P Regional Banking exchange-traded fund
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| Amount: | $1,174,000
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| Maturity: | July 6, 2020
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| Coupon: | 7% annualized, payable each quarter that each fund closes at or above downside threshold on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each fund finishes above downside threshold, par; otherwise, full exposure to losses of worse performing fund
|
| Call: | At par if each fund closes at or above initial share price on any quarterly determination date beginning Jan. 6, 2018
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| Initial levels: | $22.43 for Gold Miners, $54.35 for SPDR S&P Regional Banking
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| Downside thresholds: | $12.079 for Gold Miners, $29.267 for SPDR S&P Regional Banking; 53.85% of initial levels
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| Pricing date: | June 28
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| Settlement date: | June 23
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management handling distribution
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| Fees: | 3%
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| Cusip: | 61768CLY1
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