By Susanna Moon
Chicago, May 1 – Morgan Stanley priced $1.37 million of callable contingent income securities due April 28, 2023 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 contingent monthly coupon at an annual rate of 7% if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date for that month.
The payout at maturity will be par plus the final coupon unless either index finishes below its 60% barrier level, in which case investors will be fully exposed to any losses of the worst performing index.
The notes will be callable at par on any quarterly call date after one year.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
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| Issue: | Callable contingent income participation securities
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| Underlying indexes: | Russell 2000 and Euro Stoxx 50
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| Amount: | $1,371,000
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| Maturity: | April 28, 2023
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| Coupon: | 7% for each month that each index closes at or above coupon barrier level on the observation date for that month
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| Price: | Par
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| Payout at maturity: | Par plus coupon unless either index finishes below its barrier level, in which case investors will be fully exposed to any losses of the worst performing index
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| Initial levels: | 1,252.70 for Russell and 3,771.45 for Euro Stoxx
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| Barrier levels: | 751.62 for Russell and 2,262.87 for Euro Stoxx; 60% of initial levels
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| Call option: | At par on any quarterly call date beginning April 30, 2016
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| Pricing date: | April 27
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| Settlement date: | April 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61761JYB9
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