Published on 8/11/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $10.07 million contingent income securities linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 11 – Morgan Stanley Finance LLC priced $10.07 million of contingent income securities due Aug. 9, 2027 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.
The notes will pay a monthly coupon at an annual rate of 7.5% for the first three years. After that, they will pay a coupon of 7.5% a year for each month that each index closes above its barrier level, 60% of its initial level, on the related observation date.
The payout at maturity will be par unless the lowest-performing index finishes below its barrier 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: | $10.07 million
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| Maturity: | Aug. 9, 2027
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| Coupon: | 7.5% for first three years, then 7.5% a year for each month each index closes above 60% barrier level on related observation date
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par; if any index finishes below barrier level, full exposure to decline of lowest-performing index from its initial level
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| Initial index levels: | 3,507.41 for Stoxx, 2,476.83 for S&P and 1,412.321 for Russell
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| Barriers: | 2,104.446 for Stoxx, 1,486.098 for S&P and 847.393 for Russell, 60% of initial levels
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| Pricing date: | Aug. 4
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| Settlement date: | Aug. 9
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61768CNG8
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