Published on 3/2/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $599,000 contingent income notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, March 2 – Morgan Stanley Finance LLC priced $4.7 million of contingent income securities due Feb. 26, 2027 linked to the worst performing of the S&P 500 index, the Euro Stoxx 50 index and the Russell 2000 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% per year for the first five years, payable monthly. After that, if each index closes at or above its 60% barrier on a monthly observation date, the notes will pay a contingent monthly coupon at an annual rate of 7%.
The payout at maturity will be par unless any index finishes below its barrier, in which case investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income securities
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| Underlying indexes: | S&P 500, Euro Stoxx 50, Russell 2000
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| Amount: | $599,000
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| Maturity: | Feb. 26, 2027
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| Coupon: | 7% per year for first five years, payable monthly; then, if each index closes at or above barrier level on a monthly observation date, notes will pay a contingent coupon at annual rate of 7% for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below barrier, in which case full exposure to any losses of the worst performing index
|
| Initial levels: | 2,363.81 for S&P, 3,333.96 for Stoxx and 1,394.623 for Russell
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| Barriers: | 1,418.286 for S&P. 2,000.376 for Stoxx and 826.774 for Russell; 60% of initial levels
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 28
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
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| Cusip: | 61768CFC6
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