By Wendy Van Sickle
Columbus, Ohio, Nov. 14 – Morgan Stanley Finance LLC priced $11.14 million of contingent income autocallable securities due May 15, 2018 linked to United States Steel Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7.375% if the stock closes at or above its 70% downside threshold on the determination date that month.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any of the first five determination dates.
The payout at maturity will be par unless the stock finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Contingent income autocallable securities
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Underlying stock: | United States Steel Corp.
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Amount: | $11,142,020
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Maturity: | May 15, 2018
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Coupon: | 7.375% per year, payable monthly if stock closes at or above downside threshold on determination date that month
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Price: | Par
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Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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Call: | At par if stock closes at or above initial level on first five determination dates
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Initial level: | $27.46
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Downside threshold: | $19.222, 70% of initial level
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Pricing date: | Nov. 10
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Settlement date: | Nov. 15
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Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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Fees: | 1.25%
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Cusip: | 61768K232
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