Published on 8/3/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.58 million callable contingent income securities linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 3 – Morgan Stanley Finance LLC priced $2.58 million of callable contingent income securities due Aug. 2, 2032 linked to the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 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 10% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date that month.
The payout at maturity will be par unless the lowest-performing index finishes below its downside threshold level, 50% of its initial level, in which case investors will be fully exposed to the decline of the lowest-performing index from its initial level.
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 indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $2,579,000
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| Maturity: | Aug. 2, 2032
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| Coupon: | 10% per year, payable monthly if each index closes at or above coupon barrier level on observation date
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
|
| Initial index levels: | 3,491.19 for Stoxx, 2,477.83 for S&P and 1,442.279 for Russell
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| Coupon barriers: | 2,618.393 for Stoxx, 1,858.373 for S&P and 1,081.709 for Russell, 75% of initial levels
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| Downside thresholds: | 1,769.16 for Stoxx, 1,238.915 for S&P and 721.140 for Russell, 50% of initial levels
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| Pricing date: | July 26
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| Settlement date: | July 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768CMG9
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