Published on 10/30/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.40 million contingent income notes on indexes
By Marisa Wong
Morgantown, W.Va., Oct. 30 – Morgan Stanley Finance LLC priced $1,403,000 of contingent income securities due Oct. 29, 2032 linked to 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.
The notes will pay a contingent quarterly coupon at an annual rate of 9% if each index closes at or above its 80% coupon barrier on the review date for that quarter.
The payout at maturity will be par unless any index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income securities
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| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
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| Amount: | $1,403,000
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| Maturity: | Oct. 29, 2032
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| Coupon: | 9% per year, payable each quarter that each index closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below downside threshold, in which case 1% loss for each 1% decline of worst performing index
|
| Initial index levels: | 1,497.459 for Russell, 2,560.40 for S&P, 3,637.20 for Euro Stoxx
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| Coupon barriers: | 1,197.967 for Russell, 2,048.32 for S&P, 2,909.76 for Euro Stoxx; 80% of initial levels
|
| Downside thresholds: | 748.730 for Russell, 1,280.20 for S&P, 1,818.60 for Euro Stoxx; 50% of initial levels
|
| Pricing date: | Oct. 26
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61768CSD0
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