Published on 8/19/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $6.23 million callable contingent income notes on Russell 2000
By Susanna Moon
Chicago, Aug. 19 – Morgan Stanley priced $6.23 million of contingent income callable securities due Aug. 19, 2025 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate if the index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that quarter. The coupon will be 8% for first five years, stepping up to 8.5% on Aug. 19, 2020.
The notes will be callable at par on any annual redemption date after one year.
The payout at maturity will be par plus the final coupon unless the index finishes below its 60% trigger level, in which case investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley
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Issue: | Contingent income callable securities
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Underlying index: | Russell 2000 index
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Amount: | $6,229,000
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Maturity: | Aug. 19, 2025
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Coupon: | For each quarter index closes at or above coupon barrier level on observation date for that quarter, 8% for first five years, stepping up to 8.5% on Aug. 19, 2020
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Price: | Par
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Payout at maturity: | Par plus coupon unless index finishes below its trigger level, in which case investors will be fully exposed to any losses
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Initial level: | 1,212.688
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Coupon barrier: | 909.516, 75% of initial level
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Trigger level: | 727.613, 60% of initial level
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Call option: | At par on any annual redemption date beginning Aug. 19, 2016
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Pricing date: | Aug. 14
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Settlement date: | Aug. 19
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3%
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Cusip: | 61761JF79
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