Published on 3/21/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5 million trigger autocallable contingent yield notes on S&P, Russell 2000
By Wendy Van Sickle
Columbus, Ohio, March 21 – Morgan Stanley Finance LLC priced $5 million of trigger autocallable contingent yield notes due March 19, 2027 linked to the lesser performing of 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.
Each quarter, the notes will pay a contingent coupon at an annual rate of 6.5% if each index closes at or above its 60% coupon barrier on the observation date for that quarter.
After one year, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless either index finishes below its 50% downside threshold level, in which case investors will be fully exposed to the decline of the lesser-performing index.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the underwriters.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $5 million
|
| Maturity: | March 19, 2027
|
| Coupon: | 6.5%, payable quarterly if each index closes at or above coupon barrier level on observation date
|
| Price: | Par of $10
|
| Call: | Beginning March 15, 2018, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
|
| Payout at maturity: | Par unless either index finishes below downside threshold level, in which case 1% loss for each 1% decline of the worse performing index
|
| Initial levels: | 2,385.26 for S&P, 1,382.83 for Russell
|
| Coupon barriers: | 1,431.16 for S&P, 829.698 for Russell, 60% of initial levels
|
| Downside thresholds: | 1,192.63 for S&P, 691.415 for Russell, 50% of initial levels
|
| Pricing date: | March 16
|
| Settlement date: | March 21
|
| Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61766V750
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
