Published on 11/27/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $6.77 million trigger callable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., Nov. 27 – Morgan Stanley Finance LLC priced $6.77 million of trigger callable contingent yield notes with daily coupon observation due May 24, 2022 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.35% if each index’s closing level remains at or above its coupon barrier, 65% of its initial level, on each day during that quarter.
Beginning May 22, 2019, the notes will be callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
Morgan Stanley and UBS Financial Services Inc. are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Trigger callable contingent yield notes with daily coupon observation
|
| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
|
| Amount: | $6,772,650
|
| Maturity: | May 24, 2022
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| Coupon: | 9.35% per year, payable quarterly if each index closes at or above its coupon barrier each day that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
|
| Call option: | Callable at par on each quarterly observation date beginning May 22, 2019
|
| Initial index levels: | 2,690.73 for S&P, 1,496.541 for Russell and 3,160.33 for Stoxx
|
| Coupon barriers: | 1,748.97 for S&P, 972.752 for Russell and 2,054.21 for Stoxx; 65% of initial levels
|
| Downside thresholds: | 1,614.44 for S&P, 897.925 for Russell and 1,896.20 for Stoxx; 60% of initial levels
|
| Pricing date: | Nov. 19
|
| Settlement date: | Nov. 23
|
| Agents: | Morgan Stanley and UBS Financial Services Inc.
|
| Fees: | 1%
|
| Cusip: | 61768T878
|
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