Morgan Stanley to price callable contingent income notes tied to S&P

By Devika Patel

Knoxville, Tenn., April 27 – Morgan Stanley Finance LLC plans to price callable contingent income securities due May 3, 2030 linked to 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 an annual rate of 8.3% if the index closes at or above the coupon barrier level, 75% of the initial level, on the observation date for that quarter.

The notes are callable quarterly at par plus any contingent coupon beginning on Nov. 5.

If the final level is greater than or equal to the 60% downside threshold level, the payout at maturity will be par plus the final contingent interest payment, if any. Otherwise, investors will lose 1% for each 1% decline of the index from its initial level.

Morgan Stanley & Co. LLC is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 61770FU46) will price on April 30 and settle on May 5.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.