Published on 9/28/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.54 million contingent income autocalls on indexes
By Sarah Lizee
Olympia, Wash., Sept. 28 – Morgan Stanley Finance LLC priced $1.54 million of contingent income autocallable securities due Sept. 29, 2033 linked to the worse performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.
Interest will be fixed at 8% for the first four years, payable quarterly. After that, the notes will pay a contingent quarterly coupon at an annualized rate of 8% if each index closes at or above its initial level on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any review date after 5.5 years.
The payout at maturity will be par unless either underlying index finishes below its 50% 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
|
Guarantor: | Morgan Stanley
|
Issue: | Contingent income autocallable securities
|
Underlying indexes: | Euro Stoxx 50, S&P 500 and Russell 2000
|
Amount: | $1,536,000
|
Maturity: | Sept. 29, 2033
|
Coupon: | 8%, payable quarterly, for four years; after that, 8% annualized, payable quarterly, if each index closes at or above initial level on review date for that quarter
|
Price: | Par
|
Payout at maturity: | If each index finishes at or above 50% downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
|
Call: | At par if each index closes at or above its initial level on any quarterly call date beginning March 25, 2024
|
Initial levels: | 2,915.56 for S&P, 3,419.78 for Stoxx, 1,708.805 for Russell
|
Downside thresholds: | 1,457.78 for S&P, 1,709.89 for Stoxx, 854.403 for Russell, 50% of initial levels
|
Pricing date: | Sept. 25
|
Settlement date: | Sept. 28
|
Agent: | Morgan Stanley & Co. LLC
|
Fees: | 4%
|
Cusip: | 61768DEC5
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.