Published on 3/12/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.78 million callable contingent income notes on indexes
By Sarah Lizee
Olympia, Wash., March 12 – Morgan Stanley Finance LLC priced $2.78 million of callable contingent income securities due March 13, 2024 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 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 5.75% per year if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period.
If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon.
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.
Beginning March 12, 2020, 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
|
| Underlying indexes: | S&P 500 index, Russell 2000 index and Nasdaq-100 index
|
| Amount: | $2,781,000
|
| Maturity: | March 13, 2024
|
| Coupon: | 5.75% 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 plus final coupon 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: | Starting March 12, 2020, notes are callable at par quarterly
|
| Initial levels: | 2,743.07 for S&P, 1,521.884 for Russell and 7,015.690 for Nasdaq
|
| Coupon barriers: | 1,645.842 for S&P, 913.130 for Russell and 4,209.414 for Nasdaq; 60% of initial levels
|
| Downside thresholds: | 1,645.842 for S&P, 913.130 for Russell and 4,209.414 for Nasdaq; 60% of initial levels
|
| Pricing date: | March 8
|
| Settlement date: | March 13
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.875%
|
| Cusip: | 61768DZ73
|
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