By Marisa Wong
Madison, Wis., Feb. 28 - Morgan Stanley priced $3.05 million of contingent income securities due Feb. 28, 2028 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a contingent monthly payment of $7.0833 per $1,000 principal amount of notes if the index closes at or above the coupon barrier level, 70% of the initial level, on the determination date for that month. Otherwise, no payment will be made that month. The payment is 8.5% on an annualized basis.
If the final index level is greater than or equal to the downside threshold level, 50% of the initial index level, the payout at maturity will be par. If the final level is also greater than or equal to the coupon barrier level, investors will also receive the contingent monthly payment.
If the final index level is less than the downside threshold level, investors will be fully exposed to the decline of the index from the initial level.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley
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Issue: | Contingent income securities
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Underlying index: | Russell 2000
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Amount: | $3,047,000
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Maturity: | Feb. 28, 2028
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Coupon: | Payment will be made monthly at rate of 8.5% per year if index closes at or above coupon barrier level on determination date for that month; otherwise, no payment will be made that month
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Price: | Par
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Payout at maturity: | If final index level is greater than or equal to downside threshold level, par and, if final level is greater than or equal to coupon barrier level, contingent monthly payment; otherwise, full exposure to decline of index from initial level
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Initial index level: | 900.05
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Coupon barrier level: | 630.035, 70% of initial level
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Downside threshold level: | 450.025, 50% of initial level
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Pricing date: | Feb. 26
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Settlement date: | Feb. 28
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.5%
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Cusip: | 61761JCT4
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