Published on 11/1/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.94 million 6%-10% contingent income callables on three indexes
By Susanna Moon
Chicago, Nov. 1 – Morgan Stanley Finance LLC priced $1.94 million of contingent income callable securities due Oct. 24, 2023 linked to the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate if each index closes at or above its 70% coupon barrier on the observation date for that month. The contingent monthly coupon will be 6% for the first year, stepping up to 7% on Oct. 24, 2019, to 8% on Oct. 24, 2020, to 9% on Oct. 24, 2021 and to 10% on Oct. 24, 2022.
The notes are callable at par on any review date after one year.
The payout at maturity will be par unless any underlying index finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst 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: | Callable contingent income securities
|
| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
|
| Amount: | $1,939,000
|
| Maturity: | Oct. 24, 2023
|
| Coupon: | 6% until Oct. 24, 2019, 7% until Oct. 24, 2020, 8% until Oct. 24, 2021, 9% until Oct. 24, 2022 and 10% after that, annualized payable monthly if each index closes at or above 70% coupon barrier on review date for that month
|
| Price: | Par
|
| Payout at maturity: | If any index finishes at or above 70% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call option: | At par on any quarterly call date beginning Oct. 24, 2019
|
| Initial levels: | 7,107.233 for Nasdaq, 1,542.042 for Russell and 25,444.34 for Dow
|
| Downside thresholds: | 4,975.063 for Nasdaq, 1,079.429 for Russell and 17,811.038 for Dow, 70% of initial levels
|
| Pricing date: | Oct. 19
|
| Settlement date: | Oct. 24
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 4.89%
|
| Cusip: | 61768DFG5
|
|
|
|
|
© 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.
