Published on 10/30/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.1 million callable contingent income notes on indexes
By Sarah Lizee
Olympia, Wash., Oct. 30 – Morgan Stanley Finance LLC priced $1.1 million of callable contingent income securities due Oct. 29, 2026 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index, the Euro Stoxx Select Dividend 30 index and the MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month, the notes will pay a contingent coupon at the rate of 12% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that month.
If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon.
If any index finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing index from its initial level.
After six months, the notes will be callable quarterly at par.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying indexes: | Nasdaq-100 index, the Russell 2000 index, the Euro Stoxx Select Dividend 30 index and the MSCI Emerging Markets index
|
| Amount: | $1.1 million
|
| Maturity: | Oct. 29, 2026
|
| Coupon: | 12% per year, payable monthly if each index closes at or above coupon barrier level on observation date that month
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below downside threshold, full exposure to decline of least-performing index from its initial level
|
| Call option: | After six months, notes are callable at par quarterly
|
| Initial levels: | 7,016.389 for Nasdaq, 1,500.396 for Russell, 1,890.40 for Euro Stoxx Select Dividend and 948.96 for MSCI
|
| Coupon barriers: | 4,911.472 for Nasdaq, 1,050.277 for Russell, 1,323.28 for Euro Stoxx Select Dividend and 664.272 for MSCI; 70% of initial levels
|
| Downside thresholds: | 4,209.833 for Nasdaq, 900.238 for Russell, 1,134.24 for Euro Stoxx Select Dividend and 569.376 for MSCI; 60% of initial levels
|
| Pricing date: | Oct. 25
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| Settlement date: | Oct. 30
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.5%
|
| Cusip: | 61768DJF3
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