By Marisa Wong
Morgantown, W.Va., July 24 – Morgan Stanley Finance LLC priced $4 million of fixed-to-floating securities due July 31, 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.
The coupon will be fixed at 8% for the first three years. After that, interest will accrue at an annual rate equal to 20 times the spread of the 30-year ICE swap rate minus the two-year ICE swap rate for each day that each index closes at or above its 60% reference level, up to a maximum rate of 8% per year. Interest is payable monthly and cannot be less than zero.
The payout at maturity will be par unless either index finishes below 50% barrier level, in which case investors will be fully exposed to the decline of 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 index and Russell 2000 index
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| Amount: | $4 million
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| Maturity: | July 31, 2037
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| Coupon: | 8% for first three years; after that, 20 times the 30-year ICE swap rate minus the two-year ICE swap rate for each day that each index closes at or above its 60% reference level, capped at 8%, floor of 0%; payable monthly
|
| Price: | Varying
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| Payout at maturity: | Par, unless either index falls by more than 50%, in which case full exposure to decline of worse performing index
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| Initial levels: | Index closing levels on July 26
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| Reference levels: | 60% of initial levels
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| Barrier levels: | 50% of initial levels
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| Pricing date: | July 6
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| Settlement date: | July 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 5%
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| Cusip: | 61766YBS9
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