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Published on 4/3/2019 in the Prospect News Structured Products Daily.

New Issue: Morgan Stanley sells $9.5 million callable contingent income notes on indexes

By Sarah Lizee

Olympia, Wash., April 3 – Morgan Stanley Finance LLC priced $9.5 million of callable contingent income securities due Oct. 4, 2021 linked to the least performing of the S&P 500 index, the Nikkei 225 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon at the rate of 9.05% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.

If each index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par.

If any index finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing index from its initial level.

Beginning Oct. 3, the notes will be callable quarterly at par.

Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is handling distribution.

Issuer:Morgan Stanley Finance LLC
Guarantor:Morgan Stanley
Issue:Callable contingent income securities
Underlying indexes:S&P 500 index, Nikkei 225 index and Euro Stoxx 50 index
Amount:$9,504,000
Maturity:Oct. 4, 2021
Coupon:9.05% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
Price:Par
Payout at maturity:Par if each index finishes at or above downside threshold; if any index finishes below downside threshold, full exposure to decline of least-performing index from its initial level
Call option:Starting Oct. 3, notes are callable at par quarterly
Initial levels:2,834.40 for S&P, 21,205.81 for Nikkei, 3,351.71 for Stoxx
Coupon barriers:1,984.08 for S&P, 14,844.067 for Nikkei, 2,346.197 for Stoxx; 70% of initial levels
Downside thresholds:1,984.08 for S&P, 14,844.067 for Nikkei, 2,346.197 for Stoxx; 70% of initial levels
Pricing date:March 29
Settlement date:April 3
Agent:Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management handling distribution
Fees:2.25%
Cusip:61768D4A0

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