Published on 5/26/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.51 million contingent income notes linked to indexes
By Angela McDaniels
Tacoma, Wash., May 26 – Morgan Stanley Finance LLC priced $1.51 million of contingent income securities due May 28, 2032 linked to worst performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 9% per year if each index closes at or above its coupon barrier level, 75% of the initial index level, on the determination date for that month.
The payout at maturity will be par unless any index finishes below its downside threshold level, 50% of the initial level, in which case investors will share in the decline of the least-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
|
| Amount: | $1,514,000
|
| Maturity: | May 28, 2032
|
| Coupon: | 9% per year, payable monthly if each index closes at or above coupon barrier level on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below downside threshold level, in which case 1% loss for each 1% decline of least-performing index from initial level
|
| Initial index levels: | 1,382.509 for Russell 2000, 2,404.39 for S&P 500 and 3,586.62 for Euro Stoxx 50
|
| Coupon barriers: | 1,036.882 for Russell 2000, 1,803.293 for S&P 500 and 2,689.965 for Euro Stoxx 50; 75% of initial levels
|
| Downside thresholds: | 691.255 for Russell 2000, 1,202.195 for S&P 500 and 1,793.31 for Euro Stoxx 50, 50% of initial levels
|
| Pricing date: | May 24
|
| Settlement date: | May 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61768CHZ3
|
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