Published on 1/28/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.05 million contingent income notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 28 – Morgan Stanley priced $1.05 million of contingent income securities due Jan. 29, 2031 linked to the worse performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 9% if each index closes at or above its coupon barrier, 70% of its initial index level, on the observation date for that month.
If each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
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| Issue: | Contingent income securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $1,053,000
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| Maturity: | Jan. 29, 2031
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| Coupon: | 9% per year, payable monthly if each index closes at or above its downside threshold level on determination date for that month
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| Price: | Par of $1,000
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| Payout at maturity: | If each index finishes at or above barrier level, par plus contingent coupon; otherwise, full exposure to any losses of worst performing index
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| Initial levels: | 1,903.63 for S&P and 1,017.974 for Russell
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| Coupon barrier levels: | 1,332.541 for S&P and 712.582 for Russell; 70% of initial levels
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| Downside threshold: | 951.815 for S&P and 508.987 for Russell, 50% of initial levels
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61761JT74
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