By Susanna Moon
Chicago, Aug. 22 – Morgan Stanley Finance LLC priced $9.53 million of callable contingent coupon notes due Aug. 22, 2019 linked to the least performing of the iShares U.S. Real Estate ETF, the VanEck Vectors Semiconductor ETF and the SPDR S&P Bank ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.52% if each underlying fund closes at or above its 60% coupon threshold on the determination date for that quarter.
The notes are callable at par plus the contingent coupon on any determination date.
The payout at maturity will be par plus the contingent coupon unless any fund finishes below its 60% barrier, in which case investors will lose 1% for each 1% decline of the worst performing fund.
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 callable securities
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| Amount: | $9,533,000
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| Underlying funds: | iShares U.S. Real Estate ETF, VanEck Vectors Semiconductor ETF and SPDR S&P Bank ETF
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| Maturity: | Aug. 22, 2019
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| Coupon: | 11.52% annualized, payable quarterly that each index closes at or above 60% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each index finishes at or above 75% downside threshold; otherwise, 1% loss for each 1% decline of worst performing index
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| Call option: | At par plus contingent coupon on any quarterly determination date beginning Nov. 17, 2017
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| Initial levels: | $79.77 for real estate fund, $85.28 for semiconductor fund and $41.41 for bank fund
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| Barrier levels: | $59.828 for real estate fund, $63.96 for semiconductor fund and $31.058 for bank fund; 75% of initial levels
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| Pricing date: | Aug. 17
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| Settlement date: | Aug. 22
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
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| Cusip: | 61768CPG6
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