Published on 5/9/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $15 million review notes linked to three stocks
By Angela McDaniels
Tacoma, Wash., May 9 – Morgan Stanley Finance LLC priced $15 million of 0% review notes due May 11, 2021 linked to the worst performing of the common stocks of Nike, Inc., salesforce.com, inc. and Costco Wholesale Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will be called at par plus a call premium of 12.65% per year if each stock closes at or above its call level on either annual review date. The call level for each stock is equal to the initial share price for the first review date and 60% of the initial share price for the final date.
If the notes are not automatically called, that will necessarily mean that the final share price of one or more stocks is less than 60% of its initial share price. In this case, investors will be fully exposed to the decline of the worst-performing stock from its initial share price.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the agents.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Review notes
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| Underlying stocks: | Nike, Inc. (Symbol: NKE), salesforce.com, inc. (Symbol: CRM) and Costco Wholesale Corp. (Symbol: COST)
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| Amount: | $15 million
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| Maturity: | May 11, 2021
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Exposure to decline of worst-performing stock
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| Call: | At par plus 12.65% per year if each stock closes at or above call level on May 13, 2020 or May 6, 2021
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| Initial share prices: | $83.57 for Nike, $162.50 for salesforce.com and $244.23 for Costco
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| Call levels: | Equal to respective initial share prices on May 13, 2020; 60% of initial share prices on May 6, 2021, or $50.142 for Nike, $97.50 for salesforce.com and $146.538 for Costco
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| Pricing date: | May 7
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| Settlement date: | May 10
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| Agents: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA
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| Fees: | 1%
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| Cusip: | 61769HBF1
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