Obligation Morgan Stanleigh 0.634% ( US61760QKA12 ) en USD

Morgan Stanleigh

97.52 % ⇌

Etas-Unis

US61760QKA12 ( en USD )

0.634% par an ( paiement semestriel )

30/09/2026

Prospectus brochure de l'obligation Morgan Stanley US61760QKA12 en USD 0.634%, échéance 30/09/2026

1 000 USD

23 625 000 USD

61760QKA1

A- ( Qualité moyenne supérieure )

A1 ( Qualité moyenne supérieure )

30/09/2025 ( Dans 86 jours )

Morgan Stanley est une firme mondiale de services financiers offrant des services de banque d'investissement, de gestion de patrimoine et de courtage à une clientèle institutionnelle et privée.

L'Obligation émise par Morgan Stanleigh ( Etas-Unis ) , en USD, avec le code ISIN US61760QKA12, paye un coupon de 0.634% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 30/09/2026

L'Obligation émise par Morgan Stanleigh ( Etas-Unis ) , en USD, avec le code ISIN US61760QKA12, a été notée A1 ( Qualité moyenne supérieure ) par l'agence de notation Moody's.

L'Obligation émise par Morgan Stanleigh ( Etas-Unis ) , en USD, avec le code ISIN US61760QKA12, a été notée A- ( Qualité moyenne supérieure ) par l'agence de notation Standard & Poor's ( S&P ).

424B2 1 form424b2.htm FORM 424B2
CALCULATION OF REGISTRATION FEE

Maximum Aggregate

Amount of Registration
Title of Each Class of Securities Offered

Offering Price

Fee

Fixed to Floating Rate Notes due 2026

$23,625,000

$2,379.04

Se pt e m be r 2 0 1 6
Pricing Supplement No. 1,071
Registration Statement No. 333-200365
Dated September 27, 2016
Filed pursuant to Rule 424(b)(2)

Fixed to Floating Rate Notes due 2026
Ba se d on t he 1 0 -Y e a r U .S. Dolla r I CE Sw a p Ra t e
As further described below, interest will accrue and be payable on the notes quarterly, in arrears, (i) from the original issue date to September 30, 2019: at a
rate of 3.75% per annum and (ii) from September 30, 2019 to maturity: at a variable rate per annum equal to the 10-Year U.S. Dollar ICE Swap Rate,
subject to the minimum interest rate of 0.00% per annum.
FI N AL T ERM S
I ssue r:
Morgan Stanley
Aggre ga t e princ ipa l a m ount :
$23,625,000
I ssue pric e :
$1,000 per note
St a t e d princ ipa l a m ount :
$1,000 per note
Pric ing da t e :
September 27, 2016
Origina l issue da t e :
September 30, 2016 (3 business days after the pricing date)
M a t urit y da t e :
September 30, 2026
I nt e re st a c c rua l da t e :
September 30, 2016
Pa ym e nt a t m a t urit y:
The payment at maturity per note will be the stated principal amount plus accrued and unpaid interest, if any
Re fe re nc e ra t e :
The 10-Year U.S. Dollar ICE Swap Rate (10CMS). Please see "Additional Provisions--Reference Rate" below.
I nt e re st ra t e :
From and including the original issue date to but excluding September 30, 2019: 3.75% per annum
From and including September 30, 2019 to but excluding the maturity date (the "floating interest rate period"):
Reference rate; subject to the minimum interest rate.
For the purpose of determining the level of the reference rate applicable to an interest payment period, the level
of the reference rate will be determined two (2) U.S. government securities business days prior to the related
interest reset date at the start of such interest payment period (each, an "interest determination date").
Interest for each interest payment period during the floating interest rate period is subject to the minimum interest
rate of 0.00% per annum.
I nt e re st pa ym e nt pe riod:
Quarterly
I nt e re st pa ym e nt pe riod e nd
Unadjusted
da t e s:
I nt e re st pa ym e nt da t e s:
Each March 30, June 30, September 30 and December 30, beginning December 30, 2016; provided that if any
such day is not a business day, that interest payment will be made on the next succeeding business day and no
adjustment will be made to any interest payment made on that succeeding business day.
I nt e re st re se t da t e s:
Each March 30, June 30, September 30 and December 30, beginning September 30, 2019; provided that such
interest reset dates shall not be adjusted for non-business days.
Da y-c ount c onve nt ion:
30/360
M inim um int e re st ra t e :
0.00% per annum during the floating interest rate period
M a x im um int e re st ra t e :
Not applicable
Re de m pt ion:
Not applicable
Spe c ifie d c urre nc y:
U.S. dollars
CU SI P / I SI N :
61760QKA1 / US61760QKA12
Book -e nt ry or c e rt ific a t e d not e :
Book-entry
Busine ss da y:
New York
Age nt :
Morgan Stanley & Co. LLC ("MS & Co."), a wholly owned subsidiary of Morgan Stanley. See "Supplemental
Information Concerning Plan of Distribution; Conflicts of Interest."
Ca lc ula t ion a ge nt :
Morgan Stanley Capital Services LLC
T rust e e :
The Bank of New York Mellon
Est im a t e d va lue on t he pric ing
$980.10 per note. See "The Notes" on page 2.
da t e :
Com m issions a nd issue pric e :
Pric e t o public
Age nt 's c om m issions(1)
Proc e e ds t o issue r
Pe r not e
$1,000
$15
$985
T ot a l
$23,625,000
$354,375
$23,270,625
(1)
Morgan Stanley or one of our affiliates will pay varying discounts and commissions to dealers, including Morgan Stanley Wealth Management (an affiliate of the agent) and their
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financial advisors, of up to $15 per note depending on market conditions. See "Supplemental Information Concerning Plan of Distribution; Conflicts of Interest." For additional
information, see "Plan of Distribution (Conflicts of Interest)" in the accompanying prospectus supplement.
T he not e s involve risk s not a ssoc ia t e d w it h a n inve st m e nt in ordina ry de bt se c urit ie s. Se e "Risk Fa c t ors"
be ginning on pa ge 4 .
T he Se c urit ie s a nd Ex c ha nge Com m ission a nd st a t e se c urit ie s re gula t ors ha ve not a pprove d or disa pprove d t he se se c urit ie s,
or de t e rm ine d if t his pric ing supple m e nt or t he a c c om pa nying prospe c t us supple m e nt a nd prospe c t us is t rut hful or
c om ple t e . Any re pre se nt a t ion t o t he c ont ra ry is a c rim ina l offe nse .
Y ou should re a d t his doc um e nt t oge t he r w it h t he re la t e d prospe c t us supple m e nt a nd prospe c t us,
e a c h of w hic h c a n be a c c e sse d via t he hype rlink s be low .
Prospe c t us Supple m e nt da t e d N ove m be r 1 9 , 2 0 1 4 Prospe c t us da t e d Fe brua ry 1 6 , 2 0 1 6
T he not e s a re not de posit s or sa vings a c c ount s a nd a re not insure d by t he Fe de ra l De posit I nsura nc e Corpora t ion or a ny
ot he r gove rnm e nt a l a ge nc y or inst rum e nt a lit y, nor a re t he y obliga t ions of, or gua ra nt e e d by, a ba nk .
Fixed to Floating Rate Notes due 2026
Ba se d on t he 1 0 -Y e a r U .S. Dolla r I CE Sw a p Ra t e
The Notes
The notes are debt securities of Morgan Stanley. From the original issue date until September 30, 2019, interest on the notes will accrue and be
payable on the notes quarterly, in arrears, at 3.75% per annum, and thereafter, during the floating interest rate period, interest on the notes will
accrue and be payable on the notes quarterly, in arrears, at a variable rate per annum equal to 10CMS, subject to the minimum interest rate of
0.00% per annum. We describe the basic features of these notes in the sections of the accompanying prospectus called "Description of Debt
Securities--Floating Rate Debt Securities" and prospectus supplement called "Description of Notes," subject to and as modified by the
provisions described below. All payments on the notes are subject to the credit risk of Morgan Stanley.
The stated principal amount and the issue price of each note is $1,000. This price includes costs associated with issuing and selling the notes,
which are borne by you, and, consequently, the estimated value of the notes on the pricing date is less than the issue price. We estimate that
the value of each note on the pricing date is $980.10.
The price at which MS & Co. purchases the notes in the secondary market, absent changes in market conditions, including those related to
interest rates and 10CMS, may vary from, and be lower than, the estimated value on the pricing date. MS & Co. may, but is not obligated to,
make a market in the notes and, if it once chooses to make a market, may cease doing so at any time.
September 2016
Page 2
Fixed to Floating Rate Notes due 2026
Ba se d on t he 1 0 -Y e a r U .S. Dolla r I CE Sw a p Ra t e
Additional Provisions
Re fe re nc e Ra t e
Wha t is t he 1 0 -Y e a r U .S. Dolla r I CE Sw a p Ra t e ?
The 10-Year U.S. Dollar ICE Swap Rate (which we refer to as "10CMS") is, on any U.S. government securities business day, the fixed rate of
interest payable on an interest rate swap with a 10-year maturity as reported on Reuters Page ICESWAP1 or any successor page thereto at
approximately 11:00 a.m. New York City time for such day. This rate is one of the market-accepted indicators of medium to longer-term interest
rates.
The rate reported on Reuters Page ICESWAP1 (or any successor page thereto) is calculated by ICE Benchmark Administration Limited based
on tradeable quotes for the related interest rate swaps of the relevant tenor that are sourced from electronic trading venues.
An interest rate swap rate, at any given time, generally indicates the fixed rate of interest (paid semi-annually) that a counterparty in the swaps
market would have to pay for a given maturity, in order to receive a floating rate (paid quarterly) equal to 3-month LIBOR for that same maturity.
U .S. Gove rnm e nt Se c urit ie s Busine ss Da y
U.S. government securities business day means any day except for a Saturday, Sunday or a day on which The Securities Industry and Financial
Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S.
government securities.
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CM S Ra t e Fa llba c k Provisions
If the reference rate is not displayed by approximately 11:00 a.m. New York City time on the Reuters Page ICESWAP1 on any day on which the
level of the reference rate must be determined, the rate for such day will be determined on the basis of the mid-market semi-annual swap rate
quotations to the calculation agent provided by five leading swap dealers in the New York City interbank market (the "Reference Banks") at
approximately 11:00 a.m., New York City time, on such day, and, for this purpose, the mid-market semi-annual swap rate means the mean of
the bid and offered rates for the semi-annual fixed leg, calculated on a 30/360 day count basis, of a fixed-for-floating U.S. Dollar interest rate
swap transaction with a 10 year maturity commencing on such day and in a representative amount with an acknowledged dealer of good credit
in the swap market, where the floating leg, calculated on an actual/360 day count basis, is equivalent to USD LIBOR with a designated maturity
of three months. The calculation agent will request the principal New York City office of each of the Reference Banks to provide a quotation of
its rate. If at least three quotations are provided, the rate for that day will be the arithmetic mean of the quotations, eliminating the highest
quotation (or, in the event of equality, one of the highest) and the lowest quotation (or, in the event of equality, one of the lowest). If fewer than
three quotations are provided as requested, the reference rate will be determined by the calculation agent in good faith and in a commercially
reasonable manner.
September 2016
Page 3
Fixed to Floating Rate Notes due 2026
Ba se d on t he 1 0 -Y e a r U .S. Dolla r I CE Sw a p Ra t e
Risk Factors
The notes involve risks not associated with an investment in ordinary floating rate notes. An investment in the notes entails significant risks not
associated with similar investments in a conventional debt security, including, but not limited to, fluctuations in the reference rate, and other
events that are difficult to predict and beyond the issuer's control. This section describes the most significant risks relating to the notes. For a
complete list of risk factors, please see the accompanying prospectus supplement and prospectus.
The historical performance of the reference rate is not an indication of future performance. The historical
performance of the reference rate should not be taken as an indication of future performance during the term of the notes. Changes in the
levels of the reference rate will affect the trading price of the notes, but it is impossible to predict whether such levels will rise or fall. There
can be no assurance that the reference rate will be positive.
Investors are subject to our credit risk, and any actual or anticipated changes to our credit ratings or credit
spre a ds m a y a dve rse ly a ffe c t t he m a rk e t va lue of t he not e s. Investors are dependent on our ability to pay all amounts due
on the notes on interest payment dates and at maturity and therefore investors are subject to our credit risk and to changes in the market's
view of our creditworthiness. The notes are not guaranteed by any other entity. If we default on our obligations under the notes, your
investment would be at risk and you could lose some or all of your investment. As a result, the market value of the notes prior to maturity
will be affected by changes in the market's view of our creditworthiness. Any actual or anticipated decline in our credit ratings or increase in
the credit spreads charged by the market for taking our credit risk is likely to adversely affect the value of the notes.
The price at which the notes may be sold prior to maturity will depend on a number of factors and may be substantially less
than the amount for which they were originally purchased. Some of these factors include, but are not limited to: (i) actual or
anticipated changes in the level of the reference rate, (ii) volatility of the level of the reference rate, (iii) changes in interest and
yield rates, (iv) any actual or anticipated changes in our credit ratings or credit spreads and (v) time remaining to maturity.
Generally, the longer the time remaining to maturity, the more the market price of the notes will be affected by the factors described in the
preceding sentence. This can lead to significant adverse changes in the market price of securities like the notes. Depending on the
actual or anticipated level of the reference rate, the market value of the notes is expected to decrease and you may receive
substantially less than 100% of the issue price if you are able to sell your notes prior to maturity. In addition, any secondary
market prices may differ from values determined by pricing models used by MS & Co., as a result of dealer discounts, mark-
ups or other transaction costs.
The notes w ill not be listed on any securities exchange and secondary trading may be limited. The notes will not be
listed on any securities exchange. Therefore, there may be little or no secondary market for the notes. MS & Co. may, but is not obligated
to, make a market in the notes and, if it once chooses to make a market, may cease doing so at any time.
The issuer, its subsidiaries or affiliates may publish research that could affect the market value of the notes.
The issuer or one or more of its affiliates may, at present or in the future, publish research reports with respect to movements in interest
rates generally or the reference rate specifically. This research is modified from time to time without notice and may express opinions or
provide recommendations that are inconsistent with purchasing or holding the notes. Any of these activities may affect the market value of
the notes.
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The calculation agent, w hich is a subsidiary of the issuer, w ill make determinations w ith respect to the notes.
Any of these determinations made by the calculation agent may adversely affect the payout to investors. Moreover, certain determinations
made by the calculation agent may require it to exercise discretion and make subjective judgments, such as with respect to the reference
rate. These potentially subjective determinations may adversely affect the payout to you on the notes. For further information regarding
these types of determinations, see "Additional Provisions?Reference Rate" and related definitions above.
September 2016
Page 4
Fixed to Floating Rate Notes due 2026
Ba se d on t he 1 0 -Y e a r U .S. Dolla r I CE Sw a p Ra t e
Supplemental Information Concerning Plan of Distribution; Conflicts of Interest
We expect to deliver the notes against payment therefor in New York, New York on September 30, 2016, which will be the third scheduled
business day following the date of the pricing of the notes.
Morgan Stanley or one of our affiliates will pay varying discounts and commissions to dealers, including Morgan Stanley Smith Barney LLC
("Morgan Stanley Wealth Management") and their financial advisors, of up to $15 per note depending on market conditions. The agent may
distribute the notes through Morgan Stanley Wealth Management, as selected dealer, or other dealers, which may include Morgan Stanley & Co.
International plc ("MSIP") and Bank Morgan Stanley AG. Morgan Stanley Wealth Management, MSIP and Bank Morgan Stanley AG are
affiliates of Morgan Stanley.
MS & Co. is our wholly owned subsidiary. MS & Co. will conduct this offering in compliance with the requirements of FINRA Rule 5121 of the
Financial Industry Regulatory Authority, Inc., which is commonly referred to as FINRA, regarding a FINRA member firm's distribution of the
securities of an affiliate and related conflicts of interest. MS & Co. or any of our other affiliates may not make sales in this offering to any
discretionary account.
Acceleration Amount in Case of an Event of Default
In case an event of default with respect to the notes shall have occurred and be continuing, the amount declared due and payable per note
upon any acceleration of the notes shall be an amount in cash equal to the stated principal amount plus accrued and unpaid interest.
Validity of the Notes
In the opinion of Davis Polk & Wardwell LLP, as special counsel to Morgan Stanley, when the notes offered by this pricing supplement have
been executed and issued by Morgan Stanley, authenticated by the trustee pursuant to the Senior Debt Indenture and delivered against payment
as contemplated herein, such notes will be valid and binding obligations of Morgan Stanley, enforceable in accordance with their terms, subject
to applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally, concepts of reasonableness and equitable principles of
general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith), provided that such counsel
expresses no opinion as to the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions
expressed above. This opinion is given as of the date hereof and is limited to the laws of the State of New York and the General Corporation
Law of the State of Delaware. In addition, this opinion is subject to customary assumptions about the trustee's authorization, execution and
delivery of the Senior Debt Indenture and its authentication of the notes and the validity, binding nature and enforceability of the Senior Debt
Indenture with respect to the trustee, all as stated in the letter of such counsel dated February 16, 2016, which is Exhibit 5-a to Post-Effective
Amendment No. 1 to the Registration Statement on Form S-3 filed by Morgan Stanley on February 16, 2016.
Contact Information
Morgan Stanley Wealth Management clients may contact their local Morgan Stanley branch office or our principal executive offices at 1585
Broadway, New York, New York 10036 (telephone number (866) 477-4776). All other clients may contact their local brokerage representative.
Third-party distributors may contact Morgan Stanley Structured Investment Sales at (800) 233-1087.
September 2016
Page 5
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Fixed to Floating Rate Notes due 2026
Ba se d on t he 1 0 -Y e a r U .S. Dolla r I CE Sw a p Ra t e
Tax Considerations
In the opinion of our counsel, Davis Polk & Wardwell LLP, the notes will be treated as "variable rate debt instruments" for U.S. federal tax
purposes. The notes will be treated as providing for a single fixed rate followed by a single qualified floating rate ("QFR"), as described in the
sections of the accompanying prospectus supplement called "United States Federal Taxation?Tax Consequences to U.S. Holders?Notes?
Floating Rate Notes?General" and "?Floating Rate Notes that Provide for Multiple Rates." Under applicable Treasury Regulations, in order to
determine the amount of qualified stated interest ("QSI") and original issue discount ("OID") in respect of the notes, an equivalent fixed rate debt
instrument must be constructed. The equivalent fixed rate debt instrument is constructed in the following manner: (i) first, the initial fixed rate is
converted to a QFR that would preserve the fair market value of the notes, and (ii) second, each QFR (including the QFR determined under (i)
above) is converted to a fixed rate substitute (which will generally be the value of that QFR as of the issue date of the notes). The rules under
"United States Federal Taxation?Tax Consequences to U.S. Holders?Notes?Discount Notes?General" must be applied to the equivalent fixed
rate debt instrument to determine the amounts of QSI and OID on the notes. Under this method, the notes may be issued with OID.
A U.S. holder is required to include any QSI in income in accordance with the U.S. holder's regular method of accounting for U.S. federal
income tax purposes. U.S. holders will be required to include OID in income for U.S. federal income tax purposes as it accrues, in accordance
with a constant yield method based on a compounding of interest. QSI allocable to an accrual period must be increased (or decreased) by the
amount, if any, which the interest actually accrued or paid during an accrual period (including the fixed rate payments made during the initial
period) exceeds (or is less than) the interest assumed to be accrued or paid during the accrual period under the equivalent fixed rate debt
instrument. For the QSI and the amount of OID (if any) on a note, please contact Morgan Stanley at
[email protected].
If you are a non-U.S. holder, please read the section of the accompanying prospectus supplement called "United States Federal Taxation--Tax
Consequences to Non-U.S. Holders."
Both U.S. and non-U.S. holders should read the section of the accompanying prospectus supplement entitled "United States Federal Taxation."
The discussion under "United States Federal Taxation FATCA Legislation" in the accompanying prospectus supplement will apply to the notes,
except that, under an Internal Revenue Service notice, withholding under FATCA will not apply to payments of gross proceeds (other than any
amount treated as interest) of any disposition of the notes before January 1, 2019.
Y ou should c onsult your t a x a dvise r re ga rding a ll a spe c t s of t he U .S. fe de ra l t a x c onse que nc e s of a n inve st m e nt in
t he not e s, a s w e ll a s a ny t a x c onse que nc e s a rising unde r t he la w s of a ny st a t e , loc a l or non -U .S. t a x ing
jurisdic t ion.
T he disc ussion in t he pre c e ding pa ra gra phs unde r "T a x Conside ra t ions," a nd t he disc ussion c ont a ine d in t he
se c t ion e nt it le d "U nit e d St a t e s Fe de ra l T a x a t ion" in t he a c c om pa nying prospe c t us supple m e nt , insofa r a s t he y
purport t o de sc ribe provisions of U .S. fe de ra l inc om e t a x la w s or le ga l c onc lusions w it h re spe c t t he re t o, c onst it ut e
t he full opinion of Da vis Polk & Wa rdw e ll LLP re ga rding t he m a t e ria l U .S. fe de ra l t a x c onse que nc e s of a n
inve st m e nt in t he not e s.
Where You Can Find More Information
Morgan Stanley has filed a registration statement (including a prospectus, as supplemented by a prospectus supplement) with the Securities and
Exchange Commission, or SEC, for the offering to which this pricing supplement relates. You should read the prospectus in that registration
statement, the prospectus supplement and any other documents relating to this offering that Morgan Stanley has filed with the SEC for more
complete information about Morgan Stanley and this offering. You may get these documents without cost by visiting EDGAR on the SEC web
site at www.sec.gov. Alternatively, Morgan Stanley will arrange to send you the prospectus and the prospectus supplement if you so request by
calling toll-free 800-584-6837.
You may access these documents on the SEC web site at.www.sec.gov as follows:
Prospe c t us Supple m e nt da t e d N ove m be r 1 9 , 2 0 1 4
September 2016
Page 6
Fixed to Floating Rate Notes due 2026
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Ba se d on t he 1 0 -Y e a r U .S. Dolla r I CE Sw a p Ra t e
Prospe c t us da t e d Fe brua ry 1 6 , 2 0 1 6
Terms used but not defined in this pricing supplement are defined in the prospectus supplement or in the prospectus. As used in this pricing
supplement, the "Company," "we," "us" and "our" refer to Morgan Stanley.
September 2016
Page 7

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Document Outline

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