Published on 8/29/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $150,000 floating-rate contingent income notes linked to indexes
By Angela McDaniels
Tacoma, Wash., Aug. 29 - Morgan Stanley priced $150,000 of floating-rate contingent income securities due Aug. 31, 2020 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a coupon at an annual rate equal to Libor plus 400 basis points if the closing level of each index is greater than or equal to its coupon barrier level, 75% of its initial level, on the observation date for that month.
If the final level of each index is greater than or equal to its downside threshold level, 50% of its initial level, then the payout at maturity will be par plus the last coupon payment. If the final level of either index is less than its downside threshold level, investors will lose 1% for every 1% that the worst-performing index is below its initial level.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley
|
| Issue: | Floating-rate contingent income securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $150,000
|
| Maturity: | Aug. 31, 2020
|
| Coupon: | Each month, notes pay interest at annual rate equal to Libor plus 400 bps if each index closes at or above coupon barrier level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If final level of each index is greater than or equal to downside threshold level, par plus last coupon payment; otherwise, 1% loss for every 1% that worst-performing index is below its initial level
|
| Initial index levels: | 1,013.49 for Russell 2000 and 1,630.48 for S&P 500
|
| Coupon barrier levels: | 760.118 for Russell 2000 and 1,222.86 for S&P 500; 75% of initial levels
|
| Downside thresholds: | 506.745 for Russell 2000 and 815.24 for S&P 500; 50% of initial levels
|
| Pricing date: | Aug. 27
|
| Settlement date: | Aug. 30
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JKH1
|
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