Published on 11/27/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 callable contingent income notes linked to indexes
By Kiku Steinfeld
Chicago, Nov. 27 – Morgan Stanley Finance LLC priced $500,000 of callable contingent income securities due Nov. 21, 2022 linked to the Euro Stoxx 50 index, 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 8.1% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
Beginning May 18, 2020, the notes will be callable at par plus the coupon on any quarterly redemption date.
The payout at maturity will be par unless the least-performing index finishes below its 70% downside threshold level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
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: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $500,000
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| Maturity: | Nov. 21, 2022
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| Coupon: | 8.1% per year, payable quarterly if each index closes at or above downside threshold level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, 1% loss for every 1% that least-performing index declines from initial level
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| Call option: | Beginning May 18, 2020, at par plus coupon on any quarterly redemption date
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| Initial levels: | 1,595.117 for Russell, 3,091.84 for S&P, 3,712.20 for Stoxx
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| Coupon barriers/downside thresholds: | 1,116.582 for Russell, 2,164.288 for S&P; 2,598.54 for Stoxx,70% of initial levels
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| Pricing date: | Nov. 12
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| Settlement date: | Nov. 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1%
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| Cusip: | 61769HQ81
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