Published on 1/15/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.98 million callable contingent income notes linked to indexes
By Angela McDaniels
Tacoma, Wash., Jan. 15 – Morgan Stanley Finance LLC priced $1.98 million of callable contingent income buffered securities due Jan. 15, 2021 linked to the Russell 2000 index and the S&P 500 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 the rate of 7.4% per year if each index closes at or above its buffer level, 80% of its initial level, on the observation date for that quarter.
Beginning July 16, 2019, the notes will be callable at par on any interest payment date.
The payout at maturity will be par unless the lesser-performing index finishes below its buffer level, in which case investors will lose 1% for every 1% that the lesser-performing index declines beyond 20%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income buffered securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $1,982,000
|
| Maturity: | Jan. 15, 2021
|
| Coupon: | 7.4% per year, payable quarterly if each index closes at or above buffer level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above buffer level, | par; if either index finishes below buffer level, 1% loss for every 1% that lesser-performing index declines beyond 20%
|
| Call option: | Beginning July 16, 2019, at par on any interest payment date
|
| Initial index levels: | 1,447.385 for Russell 2000 and 2,596.26 for S&P 500
|
| Buffer levels: | 1,157.908 for Russell 2000 and 2,077.008 for S&P 500; 80% of initial levels
|
| Pricing date: | Jan. 11
|
| Settlement date: | Jan. 16
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.5%
|
| Cusip: | 61768DYV1
|
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