Published on 2/27/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.42 million contingent income notes on Russell, Euro Stoxx
By Marisa Wong
Madison, Wis., Feb. 27 - Morgan Stanley priced $2.42 million of contingent income securities due Feb. 28, 2029 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 coupon will be fixed at 8% for the first three years. After that, the notes will pay a contingent monthly coupon at an annual rate of 8% if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that month.
If of each index finishes at or above its 50% downside threshold level, the payout at maturity will be par plus the coupon, if any.
Otherwise, investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $2,417,000
|
| Maturity: | Feb. 28, 2029
|
| Coupon: | 8% initially, payable monthly; beginning in year four, 8% annualized contingent monthly payment if each index is at or above barrier level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above its downside threshold level, par plus coupon, if any; otherwise, full exposure to losses of worst performing index
|
| Initial index levels: | 1,173.946 for Russell, 3,157.48 for Euro Stoxx
|
| Barrier levels: | 880.460 for Russell, 2,368.11 for Euro Stoxx; 75% of initial levels
|
| Downside thresholds: | 586.973 for Russell, 1,578.74 for Euro Stoxx; 50% of initial levels
|
| Pricing date: | Feb. 25
|
| Settlement date: | Feb. 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JPB9
|
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