Published on 11/3/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.72 million contingent income notes on Russell, S&P 500
By Marisa Wong
Madison, Wis., Nov. 3 – Morgan Stanley priced $1.72 million of contingent income securities due Oct. 31, 2029 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon is fixed at 6.4% for the first five years, payable monthly. After that, the notes will pay a contingent coupon each month at the rate of 6.4% per year if each index closes at or above its barrier level, 50% of its initial level, on the observation date for that month.
The payout at maturity will be par plus the final coupon unless either index finishes below its barrier 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 and S&P 500
|
| Amount: | $1,724,000
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| Maturity: | Oct. 31, 2029
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| Coupon: | 6.4% for first five years; after that, 6.4% per year payable if each index closes at or above its barrier level on review date for that month; payable monthly
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier level, par plus final contingent coupon; if either index finishes below barrier level, full exposure to decline of worst-performing index from initial level
|
| Initial index levels: | 1,149.452 for Russell 2000 and 1,985.05 for S&P 500
|
| Barrier levels: | 574.726 for Russell 2000 and 992.525 for S&P 500; 50% of initial levels
|
| Pricing date: | Oct. 28
|
| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JTS8
|
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