Published on 1/30/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 contingent income securities linked to indexes
By Sarah Lizee
Olympia, Wash., Jan. 30 – Morgan Stanley Finance LLC priced $500,000 of contingent income securities due Feb. 1, 2029 linked to 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 will pay a quarterly coupon at the annualized rate of 7% for the first five years. After that a quarterly coupon at a rate of 7% per year will be paid only if each index closes at or above its coupon barrier level, 65% of its initial level, on the observation date that quarter.
If the lowest-performing index finishes at or above its 65% downside threshold, the payout at maturity will be par plus the final coupon. If the lowest-performing index finishes below its downside threshold, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
|
| Amount: | $500,000
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| Maturity: | Feb. 1, 2029
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| Coupon: | 7% annualized, payable quarterly for first five years; after that contingent coupon at a rate of 7% per year will be paid only if each index closes at or above its barrier level on a quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par plus coupon; if any index finishes below downside threshold, full exposure to decline of lowest-performing index from its initial level
|
| Initial levels: | 1,473.536 for Russell, 2,643.85 for S&P, 3,137.27 for Stoxx
|
| Coupon barriers: | 957.798 for Russell, 1,718.503 for S&P and 2,039.226 for Stoxx; 65% of initial levels
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| Downside thresholds: | 957.798 for Russell, 1,718.503 for S&P and 2,039.226 for Stoxx; 65% of initial levels
|
| Pricing date: | Jan. 28
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| Settlement date: | Jan. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61768DXH3
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