Published on 3/3/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.11 million contingent income jump securities on Russell, S&P
By Wendy Van Sickle
Columbus, Ohio, March 3 – Morgan Stanley priced $2.11 million of contingent income jump securities due March 3, 2026 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 5% if each index finishes at or above its 65% barrier level on the observation date for that quarter.
If each index finishes at or above its initial level, the payout at maturity will be par plus the upside payment of 75%, plus the finial coupon.
If either index falls, but each closes above its barrier, the payout will be par plus the final coupon. If either index falls below the barrier, but neither falls below the 50% downside threshold, the payout will be par. Otherwise, investors will be fully exposed to the loss of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income jump securities
|
| Underlying indexes: | S&P 500, Russell 2000
|
| Amount: | $2,108,000
|
| Maturity: | March 3, 2026
|
| Coupon: | 5% if each index closes above barrier on observation date; payable quarterly
|
| Price: | Par of $1,000
|
| Payout at maturity: | If each index finishes at or above initial level, par plus upside payment of 75%, plus finial coupon; if either index falls, but each closes above barrier, par plus final coupon; if either index falls below barrier, but neither falls below downside threshold, par; otherwise, full exposure to loss of worse performing index
|
| Initial index levels: | 1,932.23 for S&P, 1,033.901 for Russell
|
| Barrier levels: | 1,255.95 for S&P, 672.036 for Russell, 65% of initial levels
|
| Downside threshold levels: 966.115 for S&P, 516.951 for Russell, 50% of initial levels
|
| Pricing date: | Feb. 29
|
| Settlement date: | March 3
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61761J2E8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
