By Wendy Van Sickle
Columbus, Ohio, July 1 – Morgan Stanley Finance LLC priced $9 million of fixed-to-floating rate securities due June 30, 2036 linked to 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.
Interest is payable monthly and will be at a rate of 9% for the first three years. After that, it will accrue at 10 times the 30-year ICE swap rate minus the two-year ICE swap rate for each day both indexes close above 60% of their initial levels, subject to a maximum rate of 10% and a floor of zero.
The payout at maturity will be par unless either index finishes below its 50% barrier level, in which case investors will be fully exposed to the loss of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Fixed-to-floating securities
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $9 million
|
| Maturity: | June 30, 2036
|
| Coupon: | 9% for first three years, then 10 times 30-year ICE swap rate minus two-year ICE swap rate for each day both indexes close above 60% of initial levels, subject to maximum of 10% and floor of zero; payable monthly
|
| Initial index levels: | 2,000.54 for S&P and 1,089.646 for Russell
|
| Price: | Varying
|
| Payout at maturity: | Par, unless either index closes below 50% barrier, in which case full exposure to loss of lesser performing index
|
| Pricing date: | June 13
|
| Settlement date: | June 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fee: | 4%
|
|
|
| Cusip: | 61766YAE1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
