Published on 10/4/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.76 million contingent income notes tied to indexes
By Susanna Moon
Chicago, Oct. 4 – Morgan Stanley Finance LLC priced $1.76 million of callable contingent income securities due Sept. 30, 2032 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 are guaranteed by Morgan Stanley.
The coupon will be fixed at 6.5% for the first five years. After that, the notes will pay a contingent quarterly coupon at an annual rate of 6.5% if each index closes at or above its 60% coupon barrier on the review date for that quarter.
The payout at maturity will be par unless either index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
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: | Russell 2000 and S&P 500
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| Amount: | $1,755,000
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| Maturity: | Sept. 30, 2032
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| Coupon: | 6.5% per year for five years, payable quarterly; beginning December 2022, 6.5% annualized, payable quarterly, if each index closes at or above coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index finishes below 50% downside threshold, in which case 1% loss for each 1% decline of worse performing index
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| Initial index levels: | 1,456.86 for Russell, 2,496.84 for S&P
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| Coupon barriers: | 874.118 for Russell, 1,498.104 for S&P; 60% of initial levels
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| Downside thresholds: | 728.432 for Russell, 1,248.42 for S&P; 50% of initial levels
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768CPS0
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