Published on 9/28/2018 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. 28 – Morgan Stanley Finance LLC priced $500,000 of contingent income securities due Sept. 29, 2033 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at the annualized rate of 6% for the first five years. After that a quarterly coupon at a rate of 6% per year will be paid only if each index closes at or above its coupon barrier level, 55% of its initial level, on the observation date that quarter.
If the lowest-performing index finishes at or above its barrier level, the payout at maturity will be par plus the final coupon, if any. 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
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| Amount: | $500,000
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| Maturity: | Sept. 29, 2033
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| Coupon: | 6% annualized, payable quarterly for first five years; after that contingent coupon at a rate of 6% per year will be paid only if each index closes at or above its 55% coupon barrier level on a quarterly observation date
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus coupon, if any; if either index finishes below barrier, full exposure to decline of lowest-performing index from its initial level
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| Initial levels: | 1,708.805 for Russell, 2,915.56 for S&P
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| Coupon barriers: | 939.843 for Russell, 1,603.558 for S&P; 55% of initial levels
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| Barriers: | 854.403 for Russell, 1,457.78 for S&P; 50% of initial levels
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 28
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768DDG7
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