By Toni Weeks
San Luis Obispo, Calif., May 17 - Morgan Stanley priced $11.1 million of contingent income securities due May 22, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 7.75% if the index closes at or above the 75% coupon barrier level on the observation date for that quarter.
If the index finishes at or above the 50% downside threshold level, the payout at maturity will be par and, if the final level is also greater than or equal to the coupon barrier level, the contingent quarterly coupon.
Otherwise, investors will be fully exposed to losses from the initial index level to the final level.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying index: | S&P 500
|
| Amount: | $11.1 million
|
| Maturity: | May 22, 2028
|
| Coupon: | 7.75% annualized if index closes at or above coupon barrier level on observation date for that quarter; interest is payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above downside threshold level, par and, if final level is also greater than or equal to coupon barrier level, contingent quarterly coupon; otherwise, full exposure to losses
|
| Initial index level: | 1,658.78
|
| Coupon barrier level: | 1,244.085, 75% of initial level
|
| Downside threshold level: | 829.39, 50% of initial level
|
| Pricing date: | May 15
|
| Settlement date: | May 20
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 3.5%
|
| Cusip: | 61761JGJ2
|
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