By Angela McDaniels
Tacoma, Wash., Sept. 30 – Morgan Stanley Finance LLC priced $11 million of additional leveraged CMS curve securities due Sept. 30, 2036 linked to the lesser 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 initial $5 million of notes priced at par on Aug. 31. The total issue size is now $16 million.
The interest rate is 9% for the first two years. After that, it will be 20 times the spread of the 30-year ICE swap rate over the two-year ICE swap rate, subject to a minimum of zero and a maximum of 9% per year, multiplied by the proportion of days on which each index closes at or above its index reference level, 65% of its initial level. Interest is payable monthly.
If each index finishes at or above its barrier level, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the lesser-performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Leveraged CMS curve securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $16 million, increased from $5 million
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| Maturity: | Sept. 30, 2036
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| Coupon: | 9% for first two years, then 20 times spread of 30-year ICE swap rate over two-year ICE swap rate, subject to minimum of zero and maximum of 9% per year, multiplied by proportion of days on which each index closes at or above index reference level; payable monthly
|
| Price: | Variable prices
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| Payout at maturity: | Par unless either index finishes below barrier level, in which case full exposure to loss of lesser-performing index
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| Initial index levels: | 2,159.93 for S&P 500 and 1,246.381 for Russell 2000 (closing levels on Sept. 27)
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| Index reference levels: | 1,403.9545 for S&P 500 and 810.1477 for Russell 2000; 65% of initial levels
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| Barrier levels: | 1,079.9650 for S&P 7500 and 623.1905 for Russell 2000; 50% of initial levels
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| Pricing date: | Aug. 31
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| Upsized: | Sept. 29
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| Settlement date: | Sept. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 5%
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| Cusip: | 61766YAP6
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