Published on 11/5/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 8.7% contingent income callables on indexes, fund
By Susanna Moon
Chicago, Nov. 30 – Morgan Stanley Finance LLC priced $500,000 of contingent income callable securities due Oct. 28, 2021 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.7% if each underlying asset closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes are callable at par on any review date after six months.
The payout at maturity will be par unless any underlying asset finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index or fund.
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: | Russell 2000 index, S&P 500 index and iShares MSCI Emerging Markets ETF
|
| Amount: | $500,000
|
| Maturity: | Oct. 28, 2021
|
| Coupon: | 8.7% annualized, payable quarterly if each asset closes at or above 70% coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If any asset finishes at or above 50% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index or fund
|
| Call option: | At par on any quarterly call date beginning April 29, 2019
|
| Initial levels: | 2,656.10 for S&P, 1,468.698 for Russell and $38.38 for fund
|
| Coupon barriers: | 1,859.27 for S&P, 1,028.089 for Russell and $26.866 for fund, 70% of initial levels
|
| Downside thresholds: | 1,328.05 for S&P, 734.349 for Russell and $19.19 for fund, 50% of initial levels
|
| Pricing date: | Oct. 24
|
| Settlement date: | Oct. 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.25%
|
| Cusip: | 61768DJU0
|
|
|
|
|
© 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.
