Published on 4/5/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.42 million contingent income notes on indexes
By Marisa Wong
Morgantown, W.Va., April 5 – Morgan Stanley Finance LLC priced $1.42 million of contingent income securities due March 31, 2031 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
For the first five years, the notes will pay a fixed monthly coupon at a rate of 8% per year. After that, the notes will pay a contingent coupon each month at an annualized rate of 8% if each index closes at or above its coupon barrier level, 75% of the initial level, on the determination date for that month; otherwise, no coupon will be paid that month.
If the final level of each index is greater than or equal to 50% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
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| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $1,417,000
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| Maturity: | March 31, 2031
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| Coupon: | 8% for first five years; after that, contingent coupon each month at 8% per year if each index closes at or above its initial level on the determination date for that month
|
| Price: | Par
|
| Payout at maturity: | If final level of each index is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worse performing index
|
| Initial index levels: | 2,037.05 for S&P 500, 1,080.231 for Russell 2000
|
| Coupon barrier levels: | 1,527.788 for S&P 500, 810.173 for Russell 2000; 75% of initial levels
|
| Downside thresholds: | 1,018.525 for S&P 500, 540.116 for Russell 2000; 50% of initial levels
|
| Pricing date: | March 28
|
| Settlement date: | March 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61766BAB7
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