Published on 11/3/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $591,000 contingent income securities on Russell, Euro Stoxx
By Marisa Wong
Madison, Wis., Nov. 3 – Morgan Stanley priced $591,000 of contingent income securities due Oct. 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 coupon is fixed at 8% for the first three years, payable monthly. After that, the notes will pay a contingent coupon each month at the rate of 8% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that month.
The payout at maturity will be par plus the final coupon, if any, unless either index finishes below its downside threshold level, 50% of the initial 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 Euro Stoxx 50
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| Amount: | $591,000
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| Maturity: | Oct. 31, 2029
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| Coupon: | 8% for first three years; after that, a contingent coupon each month at the rate of 8% per year if each index closes at or above its coupon barrier level on the observation date for that month; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon, if any, unless either index finishes below its downside threshold level, in which case investors will be fully exposed to the decline of the worst-performing index
|
| Initial index levels: | 1,149.452 for Russell 2000 and 3,036.15 for Euro Stoxx 50
|
| Coupon barrier levels: | 804.616 for Russell 2000 and 2,125.305 for Euro Stoxx 50; 70% of initial levels
|
| Downside thresholds: | 574.726 for Russell 2000 and 1,518.075 for Euro Stoxx 50; 50% of initial levels
|
| Pricing date: | Oct. 28
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| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JTR0
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