Published on 3/12/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million callable contingent income notes on indexes
By Sarah Lizee
Olympia, Wash., March 12 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due March 11, 2022 linked to the least performing of the S&P 500 index, 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.
Each quarter, the notes will pay a contingent coupon at the rate of 7.15% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par.
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 quarterly at par.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Euro Stoxx 50 index
|
| Amount: | $1 million
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| Maturity: | March 11, 2022
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| Coupon: | 7.15% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
|
| 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 quarterly
|
| Initial levels: | 2,743.07 for S&P, 1,521.884 for Russell and 3,283.60 for Stoxx
|
| Coupon barriers: | 1,920.149 for S&P, 1,065.319 for Russell and 2,298.52 for Stoxx; 70% of initial levels
|
| Downside thresholds: | 1,371.535 for S&P, 760.942 for Russell and 1,641.80 for Stoxx; 50% of initial levels
|
| Pricing date: | March 8
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| Settlement date: | March 13
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
|
| Cusip: | 61768D2W4
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