Published on 10/30/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.09 million contingent income securities on Russell, S&P 500
By Jennifer Chiou
New York, Oct. 30 - Morgan Stanley priced $2,093,000 of contingent income securities due Oct. 31, 2028 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a fixed coupon of 8% per year for the first three years, After that, the notes pay a contingent coupon of 8% per year if the closing level of each index is at or above its respective coupon barrier level, 75% of its initial level, on the related observation date for that month. Otherwise, no coupon will be paid that month.
If the final level of each index is greater than or equal to its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final monthly coupon, if any. If the final level of either index is less than the downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000, S&P 500
|
| Amount: | $2,093,000
|
| Maturity: | Oct. 31, 2028
|
| Coupon: | 8% per year fixed for first three years, after that, 8% per year if each index closes at or above barrier level on observation date for that month; otherwise, no coupon for that month
|
| Price: | Par
|
| Payout at maturity: | If each index closes at or above downside threshold level, par plus final coupon, if any; full exposure to decline of worst-performing index if either index finishes below downside threshold level
|
| Initial index levels: | 1,762.11 for S&P 500 and 1,117.97 for Russell 2000
|
| Coupon barrier levels: | 1,321.583 for S&P 500 and 838.478 for Russell 2000; 75% of initial levels
|
| Downside threshold levels: | 881.055 for S&P 500 and 558.985 for Russell 2000; 50% of initial levels
|
| Pricing date: | Oct. 28
|
| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JMB2
|
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