Published on 2/26/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 contingent income participation notes on indexes
By Toni Weeks
San Luis Obispo, Calif., Feb. 26 – Morgan Stanley priced $500,000 of contingent income participation securities due Feb. 27, 2030 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 6.25% if each index closes at or above its 70% coupon barrier level on the observation date for that month.
If the final level of each index is greater than its initial level, the payout at maturity will be par plus the return of the worst-performing index plus the contingent coupon.
If the final level of either underlying index is less than or equal to its initial level but each index finishes at or above its respective downside threshold level, 50% of the initial level, the payout will be par plus the coupon, if any.
If either index falls below the 50% downside threshold level, investors will be fully exposed to the decline of the worst-performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income participation securities
|
| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
|
| Amount: | $500,000
|
| Maturity: | Feb. 27, 2030
|
| Coupon: | 6.25%, payable monthly if each index closes at or above coupon barrier level on valuation date for that month
|
| Price: | Par
|
| Payout at maturity: | If each index finishes above initial level, par plus return of worst-performing index plus coupon; if either index finishes at or below initial level but each index finishes at or above downside threshold level, par plus coupon, if any; if either index falls below downside threshold level, par plus return of worst-performing index, with full exposure to losses
|
| Initial index levels: | 1,233.975 for Russell, 3,547.1 for Euro Stoxx
|
| Coupon barrier levels: | 863.783 for Russell, 2,482.97 for Euro Stoxx; 70% of initial levels
|
| Downside thresholds: | 616.988 for Russell, 1,773.55 for Euro Stoxx; 50% of initial levels
|
| Pricing date: | Feb. 24
|
| Settlement date: | Feb. 27
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JWQ8
|
© 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.
