Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
July 02 2019 - 6:12AM
Edgar (US Regulatory)
Morgan
S
tanley
|
Free
Writing Prospectus to Preliminary Terms No. 2,200
Registration
Statement Nos. 333-221595; 333-221595-01
Dated July 1, 2019; Filed pursuant
to Rule 433
|
3-Year Worst-of NDX, INDU and RTY Jump Securities with Auto-Callable
Feature
This document provides a
summary of the terms of the notes. Investors must carefully review the accompanying preliminary terms referenced below, product
supplement, index supplement and prospectus, and the “Risk Considerations” on the following page, prior to making
an investment decision.
Terms
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Issuing Entity:
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Morgan Stanley Finance LLC
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Guarantor:
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Morgan Stanley
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Underlyings:
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NASDAQ-100 Index® (“NDX”), Dow Jones Industrial Average
SM
(“INDU”) and Russell 2000® Index (“RTY”)
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Early redemption:
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Determination dates:
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Call threshold level:
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Early redemption payment:
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1
st
:
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95% of the initial index value for each underlying
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An amount in cash per stated principal amount (corresponding to a return of at least 11.25% per annum) for each annual determination date.
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2
nd
:
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Downside threshold level:
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70% of the initial index value for each underlying
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Pricing date:
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July 31, 2019
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Maturity date:
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August 4, 2022
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CUSIP:
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61769HJP1
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Preliminary Terms:
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https://www.sec.gov/Archives/edgar/data/895421/0
00095010319008803/dp109155_fwp-ps2200.htm
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1
All
payments are subject to our credit risk
Hypothetical Examples
Early Redemption
1
|
Date
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Change
in Worst Performing Underlying
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Payment
(per note)
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1
st
Determination Date
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-20%
|
--
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2
nd
Determination Date
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+10%
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$1,225
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The
securities are automatically redeemed on the second early redemption date. Investors will receive a payment of
$1,225 per security on the related early redemption date.
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Hypothetical Payout at Maturity
1
|
Assuming
that one or more of the underlyings close below the respective call threshold level(s) on each of the annual determination
dates, and, consequently, the securities are not automatically redeemed prior to, and remain outstanding until, maturity:
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Change
in Worst Performing Underlying
|
Payment
(per note)
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+20%
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$1,337.50
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+10%
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$1,337.50
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0%
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$1,337.50
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-5%
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$1,337.50
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-10%
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$1,000.00
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-15%
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$1,000.00
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-30%
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$1,000.00
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-31%
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$690.00
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-40%
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$600.00
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-50%
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$500.00
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-70%
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$300.00
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-90%
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$100.00
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*Assumes
a call return of 11.25% per annum
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The issuer has filed a registration
statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should
read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information
about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.
Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus
if you request it by calling toll-free 1-800-584-6837.
Underlying Indices
For more information about the underlying indices, including
historical performance information, see the accompanying preliminary terms.
Risk Considerations
The risks set forth below
are discussed in more detail in the “Risk Factors” section in the accompanying preliminary terms. Please review those
risk factors carefully prior to making an investment decision.
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·
|
The
securities do not pay interest or guarantee the return of any principal.
|
|
·
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The
appreciation potential of the securities is limited by the fixed early redemption payment
or payment at maturity specified for each determination date.
|
|
·
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You
are exposed to the price risk of each underlying index.
|
|
·
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The
market price will be influenced by many unpredictable factors.
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|
·
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The
securities are subject to our credit risk, and any actual or anticipated changes to our
credit ratings or credit spreads may adversely affect the market value of the securities.
|
|
·
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As
a finance subsidiary, MSFL has no independent operations and will have no independent
assets.
|
|
·
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The
estimated value of the securities is approximately $970.60 per security, or within $22.50
of that estimate, and is determined by reference to our pricing and valuation models,
which may differ from those of other dealers and is not a maximum or minimum secondary
market price.
|
|
·
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The
securities are linked to the Russell 2000
®
Index and are subject to risks
associated with small-capitalization companies.
|
|
·
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As
a finance subsidiary, MSFL has no independent operations and will have no independent
assets.
|
|
·
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Not
equivalent to investing in the underlying indices.
|
|
·
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The
securities will not be listed on any securities exchange and secondary trading may be
limited, and accordingly, you should be willing to hold your securities for the entire
3-year term of the securities.
|
|
·
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If
the securities are redeemed prior to maturity, you will receive no further payments on
the securities and may be forced to invest in a lower interest rate environment and may
not be able to reinvest at comparable terms or returns.
|
|
·
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The
rate we are willing to pay for securities of this type, maturity and issuance size is
likely to be lower than the rate implied by our secondary market credit spreads and advantageous
to us. Both the lower rate and the inclusion of costs associated with issuing, selling,
structuring and hedging the securities in the original issue price reduce the economic
terms of the securities, cause the estimated value of the securities to be less than
the original issue price and will adversely affect secondary market prices.
|
|
·
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Hedging
and trading activity by our affiliates could potentially adversely affect the value of
the securities.
|
|
·
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The
calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL,
will make determinations with respect to the securities.
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|
·
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The
U.S. federal income tax consequences of an investment in the securities are uncertain.
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Tax Considerations
You should review carefully the discussion in the accompanying
preliminary terms under the caption “Additional Information About the Securities– Tax considerations” concerning
the U.S. federal income tax consequences of an investment in the securities, and you should consult your tax adviser.
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