Published on 8/24/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $10.8 million digital notes tied to index basket
By Marisa Wong
Morgantown, W.Va., Aug. 24 – Morgan Stanley Finance LLC priced $10.8 million of 0% digital notes due Aug. 26, 2021 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Morgan Stanley.
The basket consists of the Euro Stoxx 50 index with a 37% weight, the FTSE 100 index with a 23% weight, the Tokyo Stock Price index with a 23% weight, the Swiss Market index with a 9% weight and the S&P/ASX 200 index with an 8% weight.
If the basket return is zero or positive, the payout at maturity will be the greater of par plus the basket return and the threshold settlement amount of $1,390.50 per $1,000 of notes.
If the basket declines by 25% or less, the payout will be par plus the absolute value of the basket return.
If the basket falls by more than 25%, investors will be fully exposed to the decline.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Digital notes
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| Underlying basket: | Euro Stoxx 50 index with a 37% weight, FTSE 100 index with a 23% weight, Tokyo Stock Price index with a 23% weight, Swiss Market index with a 9% weight and S&P/ASX 200 index with an 8% weight
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| Amount: | $10.8 million
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| Maturity: | Aug. 26, 2021
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| Coupon: | 0%
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| Price: | Par of $1,000
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| Payout at maturity: | If the basket return is zero or positive, greater of par plus the basket return and the threshold settlement amount of $1,390.50; if basket declines by 25% or less, par plus the absolute value of the basket return; otherwise, full exposure to any basket decline
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| Initial levels: | 2,960.37 for Euro Stoxx, 6,828.54 for FTSE, 1,303.68 for Topix, 8,157.85 for Swiss Market, 5,515.055 for S&P/ASX
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| Pricing date: | Aug. 22
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| Settlement date: | Aug. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4.33%
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| Cusip: | 61766BBV2
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