Published on 9/27/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.39 million contingent income notes linked to Russell 2000, Euro Stoxx 50
By Angela McDaniels
Tacoma, Wash., Sept. 27 - Morgan Stanley priced $1.39 million of contingent income securities due Sept. 29, 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.
Interest is payable monthly. The interest rate is 8.75% for the first three years. After that, the notes will pay a monthly coupon at an annual rate of 8.75% if each index closes at or above its coupon barrier level, 50% of its initial level, on the review date for that month.
If each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If either index finishes below its 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 and Euro Stoxx 50
|
| Amount: | $1.39 million
|
| Maturity: | Sept. 29, 2028
|
| Coupon: | 8.75% for first three years; after that, 8.75% per year payable if each index closes at or above its coupon barrier level on review date for that month; payable monthly
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon, if any; if either index finishes below downside threshold level, full exposure to decline of worst-performing index from initial level
|
| Initial index levels: | 1,073.51 for Russell 2000 and 2,927.35 for Euro Stoxx 50
|
| Coupon barrier levels: | 805.133 for Russell 2000 and 2,195.513 for Euro Stoxx 50; 75% of initial levels
|
| Downside thresholds: | 536.755 for Russell 2000 and 1,463.675 for Euro Stoxx 50; 50% of initial levels
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JKX6
|
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