Published on 10/22/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $18.12 million callable contingent income notes on S&P 500
By Marisa Wong
Morgantown, W.Va., Oct. 22 – Morgan Stanley priced $18.12 million of callable contingent income securities due Oct. 23, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a coupon at the rate of 7.65% per year if the index closes at or above the coupon barrier level, 75% of the initial index level, on the observation date for that quarter.
If the index finishes at or above the downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon, if applicable. If the index finishes below the downside threshold level, investors will be fully exposed to the index’s decline.
Beginning Oct. 24, 2016, the notes will be callable at par on any quarterly redemption date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying index: | S&P 500
|
| Amount: | $18,121,000
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| Maturity: | Oct. 23, 2025
|
| Coupon: | 7.65% per year, payable quarter if index closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above downside threshold level, par plus final coupon, if applicable; if index finishes below downside threshold level, full exposure to index’s decline
|
| Call: | Beginning Oct. 24, 2016, notes will be callable at par on any quarterly redemption date
|
| Initial level: | 2,030.77
|
| Coupon barrier level: | 1,523.078, 75% of initial level
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| Downside threshold: | 1,218.462, 60% of initial level
|
| Pricing date: | Oct. 20
|
| Settlement date: | Oct. 23
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JN47
|
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