Published on 9/5/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 contingent income securities linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 5 – Morgan Stanley Finance LLC priced $500,000 of contingent income securities due Sept. 1, 2033 linked to the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at the annualized rate of 7% for the first 2.5 years. After that a monthly coupon at a rate of 7% per year will be paid only if each index closes at or above its barrier level, 60% of its initial level, on the observation date that month.
If the lowest-performing index finishes at or above its barrier level, the payout at maturity will be par plus the final coupon. If the lowest-performing index finishes below its barrier level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
The notes are guaranteed by Morgan Stanley.
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: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $500,000
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| Maturity: | Sept. 1, 2033
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| Coupon: | 7% annualized, payable monthly for first 2.5 years; after that contingent coupon at a rate of 7% per year will be paid only if each index closes at or above its barrier level on a monthly observation date
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus coupon; if any index finishes below barrier, full exposure to decline of lowest-performing index from its initial level
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| Initial levels: | 1,728.422 for Russell, 2,897.52 for S&P, 3,447.57 for Stoxx
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| Barriers: | 1,037.053 for Russell, 1,738.512 for S&P and 2,068.542 for Stoxx; 60% of initial levels
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| Pricing date: | Aug. 28
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| Settlement date: | Aug. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 5%
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| Cusip: | 61768DBA2
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