Published on 6/27/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $9.09 million contingent income notes linked to Russell, Euro Stoxx
By Angela McDaniels
Tacoma, Wash., June 27 - Morgan Stanley priced $9.09 million of contingent income securities due June 28, 2028 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at an annual rate of 7.7% for the first five years. After that, the notes will pay a contingent coupon at the annual rate of 7.7% if each index closes at or above its barrier level, 50% of its initial level, on the related observation date for that month. Otherwise, no coupon will be paid that month.
If the final level of each index is greater than or equal to its barrier level, the payout at maturity will be par plus the final monthly coupon. If the final level of either index is less than its barrier level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $9,094,000
|
| Maturity: | June 28, 2028
|
| Coupon: | 7.7% per year for first five years, payable monthly; beginning June 2018, 7.7% per year if each index closes at or above barrier level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If each index closes at or above barrier level, par plus final coupon; full exposure to decline of worst-performing index if either index finishes below barrier level
|
| Initial index levels: | 961.26 for Russell 2000 and 2,543.37 for Euro Stoxx 50
|
| Barrier levels: | 480.63 for Russell 2000 and 1,271.685 for Euro Stoxx 50; 50% of initial levels
|
| Pricing date: | June 25
|
| Settlement date: | June 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JGX1
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
