Published on 2/26/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.66 million callable contingent income securities on index, fund
By Wendy Van Sickle
Columbus, Ohio, Feb. 26 – Morgan Stanley Finance LLC priced $1.66 million of callable contingent income securities due Feb. 21, 2020 linked to the Energy Select Sector SPDR Fund 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 coupon at the rate of 8% per year if each asset closes at or above the coupon barrier level, 70% of the initial level, on the observation date for that quarter.
If each asset finishes at or above the downside threshold level, 70% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the lesser-performing asset’s decline from its initial level.
Beginning Aug. 21, 2018, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying assets: | Euro Stoxx 50, Energy Select Sector SPDR Fund
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| Amount: | $1,662,000
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| Maturity: | Feb. 21, 2020
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| Coupon: | 8% per year, payable quarterly if each asset closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each asset finishes at or above downside threshold level, par; if either asset finishes below downside threshold level, full exposure to decline of laggard asset from initial level
|
| Call option: | Beginning Aug. 21, 2018, callable at par on any interest payment date
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| Initial levels: | 3,426.80 for Stoxx, $68.12 for fund
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| Coupon barrier/thresholds: | 2,398.76 for Stoxx, $47.684 for fund, or 70% of initial levels
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| Pricing date: | Feb. 16
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| Settlement date: | Feb. 22
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61768CA98
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