By Marisa Wong
Madison, Wis., May 29 - Morgan Stanley priced $31.13 million of contingent income securities due May 30, 2028 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a fixed coupon of 7.1% for the first five years. After that, the notes pay a contingent coupon of 7.1% per year only if each index closes at or above its barrier level, 50% of the initial index level, on a monthly determination date. Interest is payable monthly.
If each index finishes at or above its barrier level, the payout at maturity will be par plus the final contingent coupon. If either index finishes below its barrier 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: | Russell 2000 and S&P 500
|
| Amount: | $31,132,000
|
| Maturity: | May 30, 2028
|
| Coupon: | Fixed at 7.1% for first five years; after that, contingent coupon of 7.1% per year only if each index closes at or above barrier level on a monthly determination date; payable monthly
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier level, par plus contingent coupon; otherwise full exposure to decline of worst-performing index
|
| Initial levels: | 984.28 for Russell and 1,649.60 for S&P
|
| Barrier levels: | 492.14 for Russell and 824.80 for S&P, 50% of initial levels
|
| Pricing date: | May 24
|
| Settlement date: | May 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JFU8
|
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