Published on 8/28/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5.68 million contingent income notes linked to indexes
By Angela McDaniels
Tacoma, Wash., Aug. 28 – Morgan Stanley priced $5.68 million of contingent income securities due Aug. 30, 2030 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 7% for the first five years. In years six through 15, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its barrier level, 50% of its initial level, on the observation date for that month.
If each index finishes at or above its barrier level, the payout at maturity will be par plus the final contingent coupon. If the final level of either index is less than its barrier level, investors will be fully exposed to the decline of the lower-performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $5,679,000
|
| Maturity: | Aug. 30, 2030
|
| Coupon: | In years one through five, 7%, payable quarterly; in years six through 15, notes pay contingent coupon at rate of 7% per year if each index closes at or above barrier level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier level, par plus final contingent coupon; if final level of either index is less than barrier level, full exposure to decline of lower-performing index
|
| Initial index levels: | 1,132.188 for Russell 2000 and 1,940.51 for S&P 500
|
| Barrier levels: | 566.094 for Russell 2000 and 970.255 for S&P 500; 50% of initial levels
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JE70
|
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