By Wendy Van Sickle
Columbus, Ohio, Nov. 1 – Morgan Stanley Finance LLC priced $961,000 of contingent income securities due Oct. 31, 2031 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a fixed monthly coupon at an annual rate of 7% for the first five years. After that, the coupon will be a contingent monthly payment at an annual rate of 7% if each index closes at or above its coupon barrier level, 55% of its initial level, on the observation date for that month.
The payout at maturity will be par plus the final coupon unless either index finishes below its 55% barrier level, in which case investors will lose 1% for each 1% decline of the worst-performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $961,000
|
| Maturity: | Oct. 31, 2031
|
| Coupon: | 7% for first five years, then 7% for each month that both indexes close at or above coupon barrier level on the observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par plus coupon unless either index finishes below its barrier level, in which case investors will lose 1% for each 1% decline of the worst-performing index
|
| Initial levels: | 1,204.749 for Russell 2000 and 2,139.43 for S&P 500
|
| Barrier levels: | 662.612 for Russell 2000 and 1,176.687 for S&P 500; 55% of initial levels
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61768CAL1
|
|
|
© 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.
