Published on 9/28/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $560,000 6.35% fixed, contingent income callables on indexes
By Susanna Moon
Chicago, Sept. 27 – Morgan Stanley Finance LLC priced $560,000 of contingent income callable securities due Sept. 26, 2022 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be fixed at 6.35% for the first two years, payable semiannually. After that, the notes will pay a contingent quarterly coupon at an annualized rate of 6.35% if each index closes at or above its 70% coupon barrier on the observation date for that period.
The notes are callable at par on any review date after two years.
The payout at maturity will be par unless either underlying index finishes below its 70% 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 callable securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $560,000
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| Maturity: | Sept. 26, 2022
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| Coupon: | 6.35%, payable semiannually, for two years; after that, 6.35% annualized, payable quarterly, if each index closes at or above 70% coupon barrier on review date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above 70% downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
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| Call option: | At par on any quarterly call date beginning March 26, 2019
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| Initial levels: | 2,929.67 for S&P and 1,712.316 for Russell
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| Downside thresholds: | 2,050.769 for S&P and 1,198.621 Russell, 70% of initial levels
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| Pricing date: | Sept. 21
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| Settlement date: | Sept. 26
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.25%
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| Cusip: | 61768DFD2
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