By Angela McDaniels
Tacoma, Wash., Feb. 20 – Morgan Stanley priced $5.17 million of contingent income buffered autocallable securities due Feb. 23, 2018 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annualized rate of 7% if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination date for that quarter. Otherwise, no coupon will be paid that quarter.
Beginning Feb. 23, 2016, the notes will be called if each index closes at or above its initial level on any quarterly early redemption determination date.
If the final level of each index is greater than or equal to 75% of its initial level, the payout at maturity will be par plus the last contingent quarterly coupon. Otherwise, investors will lose 1.3333% for every 1% that the worst-performing index declines beyond 25%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income buffered autocallable securities
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $5,171,000
|
| Maturity: | Feb. 23, 2018
|
| Coupon: | 7% per year if each index closes at or above coupon barrier level on quarterly determination date; otherwise, no coupon will be paid that quarter
|
| Price: | Par
|
| Payout at maturity: | If final level of each index is greater than or equal to 75% of initial level, par plus last contingent quarterly coupon; otherwise, 1.3333% loss for every 1% that worst-performing index declines beyond 25%
|
| Initial index levels: | 2,099.68 for S&P 500 and 1,227.955 for Russell 2000
|
| Coupon barrier levels: | 1,574.76 for S&P 500 and 920.966 for Russell 2000; 75% of initial levels
|
| Pricing date: | Feb. 18
|
| Settlement date: | Feb. 23
|
| Agents: | Morgan Stanley & Co. LLC
|
| Fees: | 0.1%
|
| Cusip: | 61761JXA2
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
