Published on 11/28/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million callable contingent income notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 28 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due Nov. 27, 2023 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, 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 annualized rate if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that quarter. The rate is 6% initially and steps up to 6.5% on Nov. 26, 2019; to 7.5% on Nov. 27, 2020; to 8.5% on Nov. 26, 2021; and to 9.5% on Nov. 25, 2022.
If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par.
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 one year, the notes will be callable quarterly at par.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying indexes: | Nasdaq-100 index, Russell 2000 index, and Dow Jones industrial average
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Amount: | $1 million
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Maturity: | Nov. 27, 2023
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Coupon: | Payable quarterly if each index closes at or above coupon barrier level on observation date; annualized rate is rate is 6% initially and steps up to 6.5% on Nov. 26, 2019; to 7.5% on Nov. 27, 2020; to 8.5% on Nov. 26, 2021; and to 9.5% on Nov. 25, 2022
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Price: | Par
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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
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Call option: | After one year, notes are callable at par quarterly
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Initial levels: | 6,575.663 for Nasdaq, 1,488.279 for Russell, 24,464.69 for Dow
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Coupon barriers: | 4,602.964 for Nasdaq, 1,041.795 for Russell, 17,125.283 for Dow; 70% of initial levels
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Downside thresholds: | 3,945.398 for Nasdaq, 892.967 for Russell, 14,678.814 Dow; 60% of initial levels
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Pricing date: | Nov. 21
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Settlement date: | Nov. 27
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 4.75%
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Cusip: | 61768DRH0
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