Published on 12/26/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 callable contingent income notes on Stoxx, Russell
By Sarah Lizee
Olympia, Wash., Dec. 26 – Morgan Stanley Finance LLC priced $500,000 of callable contingent income securities due Dec. 30, 2021 linked to the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent semiannual coupon at the rate of 10% per year if each index closes at or above the coupon barrier level, 70% of the initial index level, on the observation date for that period.
If each index finishes at or above the downside threshold level, 70% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the lesser-performing index’s decline from its initial level.
Beginning July 1, 2019, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying index: | Euro Stoxx 50, Russell 2000
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Amount: | $500,000
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Maturity: | Dec. 30, 2021
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Coupon: | 10% per year, payable semiannually if each index closes at or above coupon barrier level on observation date for that period
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Price: | Par
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Payout at maturity: | If index finishes at or above downside threshold level, par; if index finishes below downside threshold level, full exposure to index’s decline from initial level
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Call option: | Beginning July 1, 2019, callable at par on any interest payment date
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Initial levels: | 3,000.61 for Stoxx, 1,292.086 for Russell
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Coupon barrier/threshold: | 2,100.427for Stoxx, 904.460 for Russell, or 70% of initial level
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Pricing date: | Dec. 21
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Settlement date: | Dec. 31
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.4%
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Cusip: | 61768DTF2
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