Published on 12/30/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.36 million contingent income notes linked to Russell, S&P
By Wendy Van Sickle
Columbus, Ohio, Dec. 30 – Morgan Stanley Finance LLC priced $1.36 million of contingent income securities due Dec. 28, 2026 linked to the lesser 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 will be guaranteed by Morgan Stanley.
Interest will be payable monthly. In years one through three, the interest rate will be fixed at 7% per year. In years four through 10, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its barrier level, 60% of its initial level, on the determination date for that month.
The payout at maturity will be par plus the final contingent coupon unless either index finishes below its barrier level, in which case investors will share in the decline of the lesser-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | 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: | $1,355,000
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| Maturity: | Dec. 28, 2026
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| Contingent payment: | 7% for first three years, then 7% annualized contingent coupon if each index closes above barrier on monthly determination date, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par plus final contingent coupon unless either index finishes below barrier level, in which case investors will share in decline of lesser-performing index from initial level
|
| Initial index levels: | 2,260.96 for S&P, 1,362.659 for Russell
|
| Barrier levels: | 1,356.576 for S&P, 817.595 for Russell, 60% of initial levels
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| Pricing date: | Dec. 22
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| Settlement date: | Dec. 28
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| Agent: | Credit Suisse Securities (USA) LLC
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| Distributor: | Morgan Stanley Wealth Management.
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| Fees: | 3.5%
|
| Cusip: | 61768CCP0
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