New Issue: Morgan Stanley prices $5 million contingent income securities tied to Russell 2000

By Marisa Wong

Madison, Wis., March 22 - Morgan Stanley priced $5 million of contingent income securities due March 24, 2023 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annualized rate of 7.25% 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 coupon will be paid that month.

If the index finishes at or above the 50% downside threshold level, the payout at maturity will be par and, if the final level is also at or above the coupon barrier level, the contingent monthly payment. Otherwise, investors will be fully exposed to the index's decline.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income securities
Underlying index:	Russell 2000
Amount:	$5 million
Maturity:	March 24, 2023
Coupon:	Notes will pay coupon at rate of 7.25% per year if index closes at or above coupon barrier level on determination date for that month; otherwise, no coupon will be paid that month
Price:	Par
Payout at maturity:	If index finishes at or above downside threshold level, par and, if final level is also at or above coupon barrier level, contingent monthly payment; otherwise, full exposure to index's decline
Initial index level:	951.95
Coupon barrier level:	666.365, 70% of initial level
Downside threshold:	475.975, 50% of initial level
Pricing date:	March 20
Settlement date:	March 25
Agent:	Morgan Stanley & Co. LLC
Fees:	3.5%
Cusip:	61761JED7

© 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.