By Tali Rackner
Norfolk, Va., July 7 – Morgan Stanley Finance LLC priced $2.09 million of contingent income securities due June 30, 2031 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 notes are guaranteed by Morgan Stanley.
The coupon will be fixed at 7.15% for the first five years, payable monthly. After that, the notes will pay a contingent monthly coupon at an annual rate of 7.15% if each index closes at or above its 60% coupon barrier level on a determination date for that month.
If each index finishes above its 60% coupon barrier level, the payout at maturity will be par plus the contingent monthly coupon.
The payout will be par if either index finishes below 60% but each index finishes at or above its 50% downside threshold level.
Otherwise, investors will be fully exposed to any losses of the lesser-performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income securities
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $2,092,000
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| Maturity: | June 30, 2031
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| Coupon: | 7.15% for first five years; after that, contingent coupon each month at 7.15% per year if each index closes at or above its coupon barrier level on the determination date for that month
|
| Price: | Par
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| Payout at maturity: | If final level of each index is greater than or equal to 60% coupon barrier, par plus coupon; par if either index finishes below 60% but each index finishes at or above 50% downside threshold; otherwise, full exposure to decline of worse performing index
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| Initial index levels: | 1,089.646 for Russell 2000, 2,000.54 for S&P 500
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| Coupon barrier levels: | 653.788 for Russell 2000, 1,200.324 for S&P 500; 60% of initial levels
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| Downside thresholds: | 544.823 for Russell 2000, 1,000.27 for S&P 500; 50% of initial levels
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| Pricing date: | June 27
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| Settlement date: | June 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61766BBC4
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