Published on 5/30/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $250,000 contingent income securities on Russell, Euro Stoxx
By Jennifer Chiou
New York, May 30 - Morgan Stanley priced $250,000 of contingent income securities due May 30, 2028 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon of 10% per year if the closing level of each index is at or above its respective coupon barrier level, 74% 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: | Russell 2000, Euro Stoxx 50
|
| Amount: | $250,000
|
| Maturity: | May 30, 2028
|
| Coupon: | 10% 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: | 2,764.29 for Euro Stoxx 50 and 984.28 for Russell 2000
|
| Coupon barrier levels: | 2,045.575 for Euro Stoxx 50 and 728.367 for Russell 2000; 74% of initial levels
|
| Downside threshold levels: | 1,382.145 for Euro Stoxx 50 and 492.14 for Russell 2000; 50% of initial levels
|
| Pricing date: | May 24
|
| Settlement date: | May 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JGB9
|
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