Published on 4/4/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.81 million contingent income securities tied to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, April 4 – Morgan Stanley Finance LLC priced $1.81 million of contingent income securities due March 31, 2033 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 6% for the first five years. After that they will pay a contingent quarterly coupon at an annualized rate of 6% if each index closes above its downside threshold on the observation date for that quarter.
The payout at maturity will be par unless either index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The guarantor is Morgan Stanley.
Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.
| 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: | Russell 2000, S&P 500
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| Amount: | $1,812,000
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| Maturity: | March 31, 2033
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| Coupon: | 6%, payable quarterly for the first five years, then payable quarterly on a contingent basis if each index closes at or above downside threshold on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
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| Initial levels: | 2,658.55 for S&P, 1,543.717 for Russell
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| Downside thresholds: | 1,329.275 for S&P, 771.859 for Russell; 50% of initial levels
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| Pricing date: | March 26
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| Settlement date: | March 29
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 3.5%
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| Cusip: | 61768CG68
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