Published on 4/7/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.01 million contingent income securities on Russell, S&P 500
By Wendy Van Sickle
Columbus, Ohio, April 7 – Morgan Stanley Finance LLC priced $3.01 million of contingent income securities due March 31, 2032 linked to the worst 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 will be guaranteed by Morgan Stanley.
The notes will pay a 7% annual coupon in the first five years. Beginning in April 2022, they will pay a contingent monthly coupon at an annual rate of 7% if each index closes at or above its coupon barrier level of 60% on the determination date for that month.
If each index finishes at or above its downside threshold level, 50% of the initial index level, the payout at maturity will be par plus the contingent coupon, if any. Otherwise, investors will lose 1% for each 1% decline of the worst 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: | Contingent income securities
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| Underlying index: | S&P 500, Russell
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| Amount: | $3,013,000
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| Maturity: | March 31, 2032
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| Coupon: | 7% annually for first five years, then at annual rate of 7% if each index closes above 60% of initial level on a monthly observation date
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| Price: | Par of $10.00
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| Payout at maturity: | If final level of each index is greater downside threshold, par; otherwise, full exposure to loss of lesser-performing index
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| Initial index levels: | 2,358.57 for S&P, 1,367.261 for Russell
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| Downside thresholds: | 1,179.285 for S&P, 683.631 for Russell, 50% of initial levels
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| Pricing date: | March 28
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| Settlement date: | March 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768CFT9
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