Published on 9/4/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.82 contingent income autocallables on Russell, Euro Stoxx
By Marisa Wong
Morgantown, W.Va., Sept. 4 – Morgan Stanley priced $3.82 million of contingent income autocallable securities due Aug. 30, 2030 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.
For the first year, the notes will pay a fixed coupon of 9%. After that, the notes will pay a contingent quarterly coupon at an annual rate of 9% if each index closes at or above its initial level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date after on year.
The payout at maturity will be par plus the final contingent coupon, if any, unless either index finishes below the 50% downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
The agent is Morgan Stanley & Co. LLC.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Russell 2000 and Euro Stoxx 50
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| Amount: | $3,823,000
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| Maturity: | Aug. 30, 2030
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| Coupon: | 9% per year, fixed for year one and for years two through 15 payable quarterly if each index closes at or above its initial level on the determination date for that quarter
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus the final contingent coupon, if any, unless either index finishes below the downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index
|
| Call: | At par plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date after one year
|
| Initial levels: | 1,132.188 for Russell, 3,170.73 for Euro Stoxx
|
| Downside thresholds: | 566.094 for Russell, 1,585.365 for Euro Stoxx; 50% of initial levels
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JF38
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