Published on 3/9/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $655,000 contingent income autocallables on Russell, S&P
By Marisa Wong
Morgantown, W.Va., March 9 – Morgan Stanley Finance LLC priced a total of $655,000 of contingent income autocallable securities due Aug. 28, 2019 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to 424B2 filings with the Securities and Exchange Commission.
Morgan Stanley Finance priced $635,000 of the securities on Feb. 23 and a $20,000 add-on on Feb. 28.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annualized rate of 5.75% if each index closes at or above its 70% coupon barrier on the related quarterly observation date.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any of the two quarterly determination dates after one year.
The payout at maturity will be par unless either index closes below its 70% downside threshold on any day during the life of the notes and either index finishes below its initial level, in which case investors will be fully exposed to any decline of the worse performing index.
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: | Russell 2000, S&P 500
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| Amount: | $655,000
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| Maturity: | Aug. 28, 2019
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| Coupon: | 5.75% per year, payable each quarter that each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless either index closes below downside threshold on any day during the life of the notes and either index finishes below its initial level, in which case investors will be fully exposed to any decline of the worse performing index
|
| Call: | At par plus the contingent coupon if each index closes at or above its initial level on any of the two quarterly determination dates after one year.
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| Initial levels: | 1,549.186 for Russell, 1,549.186 for S&P
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| Coupon barriers: | 1,084.430 for Russell, 1,923.11 for S&P; 70% of initial levels
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| Downside thresholds: | 1,084.430 for Russell, 1,923.11 for S&P; 70% of initial levels
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| Pricing date: | Feb. 23 for $635,000, Feb. 28 for $20,000
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| Settlement date: | Feb. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.13%
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| Cusip: | 61768CZS9
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