Published on 5/29/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4.37 million contingent income buffered notes linked to indexes
By Angela McDaniels
Tacoma, Wash., May 29 - Morgan Stanley priced $4.37 million of contingent income buffered securities due May 30, 2028 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 8.75% if each index closes at or above its coupon barrier level, 75% of its initial level, on the determination 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 50% of its initial level, the payout at maturity will be par plus the last contingent monthly coupon, if any. Otherwise, investors will lose 2% for every 1% that the worst-performing index declines beyond 50%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income buffered securities
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $4,365,000
|
| Maturity: | May 30, 2028
|
| Coupon: | 8.75% per year if each index closes at or above coupon barrier level on monthly determination date; otherwise, no coupon will be paid that month
|
| Price: | Par of $1,000
|
| Payout at maturity: | If final level of each index is greater than or equal to 50% of initial level, par plus last contingent monthly coupon, if any; otherwise, 2% loss for every 1% that worst-performing index declines beyond 50%
|
| Initial index levels: | 1,649.60 for S&P 500 and 984.28 for Russell 2000
|
| Coupon barrier levels: | 1,237.20 for S&P 500 and 738.21 for Russell 2000; 75% of initial levels
|
| Pricing date: | May 24
|
| Settlement date: | May 30
|
| Agents: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JGD5
|
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