Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
July 10 2020 - 2:34PM
Edgar (US Regulatory)
Morgan
Stanley
|
Free Writing Prospectus to Preliminary
Terms No. 4,536
Registration Statement Nos. 333-221595;
333-221595-01
Dated July 10, 2020; Filed pursuant
to Rule 433
|
1.5-Year INDU Buffered 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
|
Issuing
entity:
|
Morgan
Stanley Finance LLC
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Guarantor:
|
Morgan
Stanley
|
Underlying:
|
Dow
Jones Industrial AverageSM (“INDU”)
|
Early
redemption:
|
Determination
date:
|
Early
redemption payment:
|
1st:
July 29, 2021
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An
amount in cash per stated principal amount (corresponding to a return of at least 6.10% per annum)
|
Buffer
amount:
|
10%
of principal (90% maximum loss)1
|
Pricing
date:
|
July
28, 2020
|
Final
determination date:
|
January
28, 2022
|
Maturity
date:
|
February
2, 2022
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CUSIP:
|
61771BUR3
|
Preliminary
terms:
|
https://www.sec.gov/Archives/edgar/data/895421/
000095010320013452/dp132078_fwp-ps4536.htm
|
1All
payments are subject to our credit risk
Hypothetical Examples
Early Redemption1
|
Date
|
Change
in Underlying
|
Payment
(per security)
|
1st
Determination Date
|
+20%
|
$1,061.00*
|
The
securities are automatically redeemed on the early redemption date. Investors will receive a payment of $1,061.00
per security on the early redemption date.
|
*Assumes a call
return of 6.10% per annum
Hypothetical Payout at Maturity1
|
Assuming
that the underlying closes below the initial index value on the first determination date, and, consequently, the securities
are not automatically redeemed prior to, and remain outstanding until, maturity:
|
Change
in Underlying
|
Payment
(per security)
|
+30%
|
$1,600
|
+20%
|
$1,400
|
+10%
|
$1,200
|
0%
|
$1,000
|
-10%
|
$1,000
|
-11%
|
$990
|
-20%
|
$900
|
-30%
|
$800
|
-40%
|
$700
|
-50%
|
$600
|
-70%
|
$400
|
-90%
|
$200
|
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 Index
For more information about the underlying index, 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.
|
·
|
The
securities do not pay interest and provide a minimum payment at maturity of only 10%
of your principal.
|
|
·
|
If
the securities are redeemed prior to maturity, the appreciation potential of the securities
is limited by the fixed early redemption payment specified for the first determination
date.
|
|
·
|
The
market price will be influenced by many unpredictable factors.
|
|
·
|
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.
|
|
·
|
As
a finance subsidiary, MSFL has no independent operations and will have no independent
assets.
|
|
·
|
The
estimated value of the securities is approximately $960.30 per security, or within $35.00
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.
|
|
·
|
Not
equivalent to investing in the underlying index.
|
|
·
|
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
1.5-year term of the securities.
|
|
·
|
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.
|
|
·
|
Hedging
and trading activity by our affiliates could potentially adversely affect the value of
the securities.
|
|
·
|
The
calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL,
will make determinations with respect to the securities.
|
|
·
|
The
U.S. federal income tax consequences of an investment in the securities are uncertain.
|
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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