New Issue: Morgan Stanley sells $1.6 million callable contingent market-linked notes on SPDR ETFs

By William Gullotti

Buffalo, N.Y., April 23 – Morgan Stanley Finance LLC priced $1.6 million of market-linked securities – callable with contingent coupon and contingent downside due April 17, 2028 linked to the performance of the Health Care Select Sector SPDR Fund, the Energy Select Sector SPDR Fund, the Financial Select Sector SPDR Fund and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Morgan Stanley.

The notes will pay a contingent quarterly interest payment at the rate of 10.05% per year if each ETF closes at or above the coupon barrier level, 65% of the initial level, on the observation date for that period.

After six months, the notes may be called at par plus any interest payment otherwise due on any quarterly observation date.

The payout at maturity will be par plus the final interest payment if each ETF finishes at or above its coupon barrier.

If the worst performer finishes below its coupon barrier but at or above the 55% downside threshold, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.

Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.

Issuer:	Morgan Stanley Finance LLC
Guarantor:	Morgan Stanley
Issue:	Market linked securities – callable with contingent coupon and contingent downside
Underlying funds:	Energy Select Sector SPDR Fund, Financial Select Sector SPDR Fund, Technology Select Sector SPDR Fund, Health Care Select Sector SPDR Fund
Amount:	$1.6 million
Maturity:	April 17, 2028
Coupon:	10.05% annual rate, payable quarterly if all ETFs close at or above their coupon barrier levels on the relevant observation date
Price:	Par
Payout at maturity:	Par plus final coupon if each ETF finishes at or above coupon barrier; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for every 1% decline of worst performer from its initial level
Call option:	At par plus any coupon otherwise due on any quarterly observation date after six months
Initial levels:	$97.72 for Energy, $40.60 for Financial, $208.80 for Technology, $141.01 for Health Care
Coupon barriers:	$63.518 for Energy, $26.39 for Financial, $135.72 for Technology, $91.6565 for Health Care; 65% of initial levels
Downside thresholds:	$53.746 for Energy, $22.33 for Financial, $114.84 for Technology, $77.5555 for Health Care; 55% of initial levels
Pricing date:	April 11
Settlement date:	April 16
Agents:	Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
Fees:	2.325%
Cusip:	61776LTG2

© 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.