By Susanna Moon
Chicago, May 1 – Morgan Stanley priced $1.52 million of callable contingent income securities due April 28, 2023 linked to the worst performing of the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7% if the 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 unless the index finishes below its 50% trigger level, in which case investors will be fully exposed to any losses.
The notes will be callable at par on any quarterly call date after one year.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | Russell 2000
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| Amount: | $1.52 million
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| Maturity: | April 30, 2025
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| Coupon: | 7% for each month index closes at or above coupon barrier level on the observation date for that month
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| Price: | Par
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| Payout at maturity: | Par plus coupon unless index finishes below its barrier level, in which case investors will be fully exposed to any losses
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| Initial level: | 1,252.70
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| Coupon barrier: | 876.89, 70% of initial level
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| Trigger level: | 626.35, 50% of initial level
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| Call option: | At par on any quarterly call date beginning April 30, 2016
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| Pricing date: | April 27
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| Settlement date: | April 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61761JYJ2
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