Published on 1/7/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.56 million contingent income buffered notes linked to Russell, S&P
By Angela McDaniels
Tacoma, Wash., Jan. 7 – Morgan Stanley priced $1.56 million of contingent income buffered securities due Dec. 31, 2018 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annualized rate of 6.82% if each index closes at or above its coupon barrier level, 80% of its initial level, on the determination date for that quarter. Otherwise, no coupon will be paid that quarter.
If the final level of each index is greater than or equal to 80% of its initial level, the payout at maturity will be par plus the last contingent coupon. Otherwise, investors will lose 1.25% for every 1% that the lesser-performing index declines beyond 20%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income buffered securities
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $1.56 million
|
| Maturity: | Dec. 31, 2018
|
| Coupon: | 6.82% per year, payable quarterly if each index closes at or above coupon barrier level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final level of each index is greater than or equal to buffer level, par plus final contingent coupon; otherwise, 1.25% loss for every 1% that lesser-performing index declines beyond 20%
|
| Initial index levels: | 1,108.624 for Russell 2000 and 2,012.66 for S&P 500
|
| Coupon barrier levels: | 886.899 for Russell 2000 and 1,610.128 for S&P 500; 80% of initial levels
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| Buffer levels: | 886.899 for Russell 2000 and 1,610.128 for S&P 500; 80% of initial levels
|
| Pricing date: | Jan. 5
|
| Settlement date: | Jan. 8
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.1%
|
| Cusip: | 61761JU72
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