Published on 4/17/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.3 million contingent income securities on S&P 500, Russell
By Jennifer Chiou
New York, April 17 - Morgan Stanley priced $1.3 million of contingent income securities due April 17, 2028 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly payment of 8.35% per year for the first three years. After that, the notes will pay a contingent coupon of 8.35% per year if the closing level of each index is at or above its respective coupon barrier level, 70% 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 downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final monthly coupon, if any. If the final level of either index is less than the downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | S&P 500, Russell 2000
|
| Amount: | $1.3 million
|
| Maturity: | April 17, 2028
|
| Coupon: | 8.35% per year for first three years, payable monthly; beginning May 2016, 8.35% per year if each index closes at or above coupon barrier level on observation date for that month; otherwise, no coupon for that month
|
| Price: | Par
|
| Payout at maturity: | If each index closes at or above downside threshold level, par plus final coupon, if any; full exposure to decline of worst-performing index if either index finishes below downside threshold level
|
| Initial index levels: | 942.85 for Russell 2000 and 1,588.85 for S&P 500
|
| Coupon barrier levels: | 659.995 for Russell 2000 and 1,112.195 for S&P 500; 70% of initial levels
|
| Downside threshold levels: | 471.425 for Russell 2000 and 794.425 for S&P 500; 50% of initial levels
|
| Pricing date: | April 12
|
| Settlement date: | April 17
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JFL8
|
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