By Wendy Van Sickle
Columbus, Ohio, Feb. 9– Morgan Stanley Finance LLC priced $2 million of fixed-to-floating rate securities due Feb. 28, 2037 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 10% for the first 1.5 years. After that, it will accrue at 15 times the 30-year ICE swap rate minus the two-year ICE swap rate for each day both indexes close above 65% of their initial levels, up to a maximum rate of 10% a year.
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
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| Guarantor: | Morgan Stanley
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| Issue: | Fixed-to-floating securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $2 million
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| Maturity: | Feb. 28, 2037
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| Coupon: | 10% for first 1.5 years, then 15 times 30-year ICE swap rate minus two-year ICE swap rate for each day both indexes close above 65% of initial levels, capped at 10% a year; payable monthly
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| Initial index levels: | Closing levels on Feb. 23
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| Price: | Varying
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| Payout at maturity: | Par, unless either index closes below 50% barrier, in which case full exposure to loss of lesser performing index
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| Pricing date: | Feb. 6
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| Settlement date: | Feb. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fee: | 5%
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| Cusip: | 61766YBA8
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