Published on 10/29/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 callable contingent income notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 29 – Morgan Stanley Finance LLC priced $500,000 of callable contingent income securities due Oct. 28, 2021 linked to the least performing of the Euro Stoxx 50 index, Russell 2000 index and the S&P 500 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 contingent coupon at the rate of 7.65% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that quarter.
If each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final coupon.
If any index finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing index from its initial level.
After six months, 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
|
| Issue: | Callable contingent income securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
|
| Amount: | $500,000
|
| Maturity: | Oct. 28, 2021
|
| Coupon: | 7.65% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that quarter
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below downside threshold, full exposure to decline of least-performing index from its initial level
|
| Call option: | After six months, notes are callable at par on any interest payment date
|
| Initial levels: | 3,130.33 for Stoxx, 1,468.698 for Russell and 2,656.1 for S&P
|
| Coupon barriers: | 2,191.231 for Stoxx, 1,028.089 for Russell and 1,859.27 for S&P; 70% of initial levels
|
| Downside thresholds: | 1,565.165 for Stoxx, 734.349 for Russell and 1,328.05 for S&P; 50% of initial levels
|
| Pricing date: | Oct. 24
|
| Settlement date: | Oct. 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.25%
|
|
|
| Cusip: | 61768DJT3
|
|
|
© 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.
