Published on 9/6/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $862,000 6.5% fixed, contingent income notes on indexes
By Susanna Moon
Chicago, Sept. 6 – Morgan Stanley Finance LLC priced $862,000 of contingent income securities due Sept. 1, 2033 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filed with the Securities and Exchange Commission.
The coupon will be fixed at 6.5% for the first five years, payable quarterly. After that, the notes will pay a contingent quarterly coupon at an annual rate of 6.5% if each index closes at or above its 60% coupon barrier on the observation date for that quarter.
The payout at maturity will be par unless either underlying index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
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 index, Russell 2000 index
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| Amount: | $862,000
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| Maturity: | Sept. 1, 2033
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| Coupon: | 6.5%, payable quarterly, for five years; beginning December 2023, 6.5% annualized, payable quarterly if each index closes at or above 60% coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above 60% downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
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| Initial levels: | 2,897.52 for S&P, 1,728.422 for Russell
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| Downside thresholds: | 1,738.512 for S&P, 1,037.053 for Russell, 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: | 3.5%
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| Cusip: | 61768DAU9
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