By Susanna Moon
Chicago, June 1 – Morgan Stanley priced $1.9 million of callable contingent income securities due May 29, 2025 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 will be fixed at 7.5% for the first three years, payable monthly. After that, the notes will pay a contingent monthly coupon at an annual rate of 7.5% if each index closes at or above its coupon barrier level, 70% of the initial level, on the determination date for that month.
The notes will be callable at par plus the contingent coupon any quarterly determination date after one year.
The payout at maturity will be par plus the final contingent coupon unless either index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.
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 index and Euro Stoxx 50 index
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| Amount: | $973,000
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| Maturity: | May 29, 2025
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| Coupon: | 7.5% initially, payable monthly; beginning June 2018, 7.5% annualized per month if each index closes at or above barrier level on observation date for that month
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless either index finishes below barrier level, in which case exposure to decline of worst performing index
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| Call: | At par plus contingent payment on any quarterly determination date beginning May 29, 2016
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| Coupon barriers: | 70% of initial levels
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| Trigger levels: | 50% of initial levels
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| Pricing date: | May 26
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| Settlement date: | May 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61761JYR4
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