Published on 7/31/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.16 million contingent income notes due 2029 tied to two indexes
By Toni Weeks
San Luis Obispo, Calif., July 31 – Morgan Stanley priced $2.16 million of contingent income securities due July 31, 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 notes will pay a monthly fixed coupon at an annualized rate of 6.05% for the first six years. After that, the notes pay an annualized 6.05% contingent coupon if each index closes at or above its 50% coupon barrier level on a determination date for that month.
The payout at maturity will be par plus the final contingent coupon, unless either index finishes below its 50% trigger level, in which case investors will be fully exposed to the decline 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: | $2.16 million
|
| Maturity: | July 31, 2029
|
| Coupon: | 6.05% for first six years; then, 6.05% per year if each index closes at or above its barrier level on observation date for that month; payable monthly
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above its 50% trigger level, par plus the final contingent coupon; otherwise, full exposure to losses of worst-performing index
|
| Initial index levels: | 1,139.502 for Russell, 3,171.55 for Euro Stoxx 50
|
| Coupon barrier/trigger levels: | 569.751 for Russell, 1,585.775 for Euro Stoxx 50; 50% of initial levels
|
| Pricing date: | July 28
|
| Settlement date: | July 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JRN1
|
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