Published on 8/7/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $5.81 million trigger callable notes tied to three indexes
By Marisa Wong
Morgantown, W.Va., Aug. 7 – Morgan Stanley Finance LLC priced $5.81 million of trigger callable contingent yield notes with daily coupon observation due Feb. 4, 2020 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.2% if each index’s closing level is at least 65% of its initial level on each trading day for that quarter.
Beginning Feb. 5, 2018, the notes will be callable in whole but not in part on any coupon payment date prior to maturity.
If the notes are not called and each index finishes at or above its 65% downside threshold level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $5.81 million
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| Maturity: | Feb. 4, 2020
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| Coupon: | 7.2% per year, payable quarterly if each index closes at or above its coupon barrier level on each trading day for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus the final coupon, if any, unless any index finishes below downside threshold level, in which case 1% loss for each 1% decline of worst performing index
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| Call option: | Beginning Feb. 5, 2018, at par on any coupon payment date prior to maturity
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| Initial levels: | 3,467.73 for Euro Stoxx, 1,429.260 for Russell, 2,472.10 for S&P
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| Coupon barrier levels: | 2,254.02 for Euro Stoxx, 929.019 for Russell, 1,606.87 for S&P; 65% of initial levels
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| Downside thresholds: | 2,254.02 for Euro Stoxx, 929.019 for Russell, 1,606.87 for S&P; 65% of initial levels
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| Pricing date: | July 28
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| Settlement date: | Aug. 4
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
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| Fees: | 1.25%
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| Cusip: | 61766X442
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