Published on 11/26/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.25 million contingent income notes on Russell, S&P 500
By Marisa Wong
Madison, Wis., Nov. 26 - Morgan Stanley priced $1.25 million of contingent income securities due Nov. 27, 2028 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon is fixed at 6.55% for the first five years. After that, the notes will pay a contingent coupon of 6.55% per year if the closing level of each index is at or above its respective barrier level, 50% of its initial level, on the related observation date for that month. Otherwise, no coupon will be paid that month.
If the final level of each index is greater than or equal to its barrier level, the payout at maturity will be par plus the final monthly coupon.
Otherwise, investors will be fully exposed to the decline of the worse performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000, S&P 500
|
| Amount: | $1,249,000
|
| Maturity: | Nov. 27, 2028
|
| Coupon: | 6.55% for first five years; after that, contingent coupon of 6.55% per year if closing level of each index is at or above its respective barrier level on observation date for that month, otherwise, no coupon will be paid that month
|
| Price: | Par
|
| Payout at maturity: | If final level of each index is greater than or equal to its barrier level, par plus final monthly coupon; otherwise, full exposure to decline of worse performing index from its initial level
|
| Initial index levels: | 1,124.92 for Russell, 1,804.76 for S&P
|
| Barrier levels: | 562.46 for Russell, 902.38 for S&P; 50% of initial levels
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 27
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JMM8
|
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