Published on 5/25/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.5 million fixed-to-floaters on CMS rates, indexes
By Sarah Lizee
Olympia, Wash., May 25 – Morgan Stanley Finance LLC priced $1.5 million of fixed-to-floating securities due May 29, 2028 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Interest will be fixed at 10% for the first year. After that, it will accrue at 10 times the spread of the 30-year U.S. dollar ICE swap rate minus the two-year U.S. dollar ICE swap rate for each day that each index closes at or above its 50% reference level, subject to a maximum interest rate of 10%. Interest will be payable monthly and cannot be less than zero.
The payout at maturity will be par unless any index finishes below its 50% barrier level, in which case investors will be fully exposed to the decline of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Fixed-to-floating securities
|
| Underlying indexes: | S&P 500 index and Russell 2000 index
|
| Amount: | $1.5 million
|
| Maturity: | April 30, 2033
|
| Coupon: | 10% for first year; then, 10 times spread of 30-year U.S. dollar ICE swap rate minus two-year U.S. dollar ICE swap rate for each day that each index closes at or above reference level, cap of 10%, floor of zero; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless any index falls by more than 50%, in which case full exposure to decline of worst performing index
|
| Initial levels: | 2,733.29 for S&P, 1,627.609 for Russell
|
| Barrier levels: | 1,366.645 for S&P, 813.805 for Russell, 50% of initial levels
|
| Pricing date: | May 23
|
| Settlement date: | May 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1%
|
| Cusip: | 61766YCZ2
|
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