Published on 8/16/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $7.75 million callable contingent income securities linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 16 – Morgan Stanley Finance LLC priced $7.75 million of callable contingent income securities due Feb. 14, 2020 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 quarter, the notes will pay a contingent coupon at the rate of 9.1% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on each day that quarter.
The notes will be callable on any quarterly redemption date after six months.
The payout at maturity will be par unless the lowest-performing index finishes below its downside threshold level, 70% 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: | Callable contingent income securities
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $7,747,000
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| Maturity: | Feb. 14, 2020
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| Coupon: | 9.1% per year, payable quarterly if each index closes at or above coupon barrier level on each day that quarter
|
| Price: | Par
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| Call option: | At par on any quarterly redemption date after six months
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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 levels: | 1,412.321 for Russell, 2,441.32 for S&P and 3,507.41 for Stoxx
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| Coupon barriers: | 1,030.673 for Russell, 1,830.99 for S&P, and 2,554.755 for Stoxx; 75% of initial levels
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| Downside thresholds: | 961.962 for Russell, 1,708.924 for S&P, and 2,384.438 for Stoxx; 70% of initial levels
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| Pricing date: | Aug. 11
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| Settlement date: | Aug. 16
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61768CNZ6
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