By Angela McDaniels
Tacoma, Wash., April 1 - Morgan Stanley priced $5.25 million of contingent income securities due April 3, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent monthly payment of 8% per year, or $6.6667 per $1,000 principal amount of notes, if the index closes at or above the coupon barrier level, 75% of the initial level, on the determination date for that month. Otherwise, no coupon will be paid that month.
If the final index level is greater than or equal to the downside threshold level, 50% of the initial index level, the payout at maturity will be par plus the final contingent monthly payment, if any.
If the final index level is less than the downside threshold level, investors will be fully exposed to the decline of the index from the initial level.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Smith Barney LLC is the dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying index: | S&P 500
|
| Amount: | $5.25 million
|
| Maturity: | April 3, 2028
|
| Coupon: | Notes will pay coupon at rate of 8% per year if index closes at or above coupon barrier level on determination date for that month; otherwise, no coupon will be paid that month
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above downside threshold level, par plus final contingent monthly payment, if any; otherwise, full exposure to index's decline
|
| Initial index level: | 1,569.19
|
| Coupon barrier level: | 1,176.8925, 75% of initial level
|
| Downside threshold: | 784.595, 50% of initial level
|
| Pricing date: | March 28
|
| Settlement date: | April 3
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JEK1
|
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