By Marisa Wong
Morgantown, W.Va., Jan. 20 – Morgan Stanley Finance LLC priced $5 million of additional leveraged CMS curve securities due Jan. 31, 2037 linked to the worse performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total issue size to $10 million. The initial $5 million priced on Jan. 5.
The notes are guaranteed by Morgan Stanley.
The interest rate is 9% for the first three years. Beginning Jan. 31, 2020, 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 worse-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: | Leveraged CMS curve securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $10 million (increased from $5 million)
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| Maturity: | Jan. 31, 2037
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| Coupon: | 9% for first three years; beginning Jan. 31, 2020, 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
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| 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: | For each index, its closing level on Jan. 26
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| Index reference levels: | 65% of initial levels
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| Barrier levels: | 50% of initial levels
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| Pricing date: | Jan. 5 for $5 million, Jan. 18 for $5 million
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| Settlement date: | Jan. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fee: | 5%
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| Cusip: | 61766YAZ4
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