Published on 7/1/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $507,000 contingent income notes linked to Russell, Stoxx
By Marisa Wong
Madison, Wis., July 1 – Morgan Stanley priced $507,000 of contingent income securities due June 28, 2030 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 fixed monthly coupon at 7% per year for the first four years. After that, the notes will pay a contingent monthly coupon at the rate of 7% per year if each index closes at or above its barrier level, 50% of its initial level, on the determination date for that month.
The payout at maturity will be par plus the final contingent coupon if each index finishes at or above its barrier level. Otherwise, investors will be fully exposed to the decline of the worst-performing index.
The agent is Morgan Stanley & Co. LLC.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
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| Underlying indexes: | Russell 2000 and Euro Stoxx 50
|
| Amount: | $507,000
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| Maturity: | June 28, 2030
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| Coupon: | Fixed monthly coupon at 7% per year for the first four years; after that, contingent monthly coupon at the rate of 7% per year if each index closes at or above its barrier level on the determination date for that month
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus the final contingent coupon if each index finishes at or above its barrier level; otherwise, investors will be fully exposed to the decline of the worst-performing index
|
| Initial levels: | 1,283.281 for Russell, 3,610.91 for Euro Stoxx
|
| Barrier levels: | 641.641 for Russell, 1,805.455 for Euro Stoxx; 50% of initial levels
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| Pricing date: | June 25
|
| Settlement date: | June 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JA41
|
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