Published on 4/4/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.97 million contingent income notes on indexes
By Susanna Moon
Chicago, April 4 - Morgan Stanley priced $2.97 million of contingent income securities due April 5, 2023 linked to the worst performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 9% for the first three years, payable monthly. After that, the notes will pay a contingent coupon at an annualized rate of 9% for that month if each index closes at or above its 70% coupon barrier level on a monthly determination date.
The payout at maturity will be par plus the final contingent coupon unless either index finishes below its 80% downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | S&P 500 and Euro Stoxx 50
|
| Amount: | $2,965,000
|
| Maturity: | April 5, 2023
|
| Coupon: | 9% for first three years, payable monthly; after that, if each index closes at or above coupon barrier on monthly determination date, 9% contingent coupon for that month
|
| Price: | Par
|
| Payout at maturity: | Par plus final contingent coupon unless any index finishes below trigger level, in which case full exposure to losses of worst performing index
|
| Initial index levels: | 1,570.25 for S&P and 2,679.80 for Euro Stoxx
|
| Coupon barrier levels: | 1,099.175 for S&P and 1,875.86 for Euro Stoxx; 70% of initial levels
|
| Downside threshold: | 1,256.20 for S&P and 2,143.84 for Euro Stoxx; 80% of initial levels
|
| Pricing date: | April 2
|
| Settlement date: | April 5
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61761JFF1
|
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