Published on 1/11/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.25 million callable range accrual notes on S&P, Russell, ETF
By Wendy Van Sickle
Columbus, Ohio, Jan. 11 – Morgan Stanley Finance LLC priced $2.25 million of callable range accrual securities due Jan. 12, 2024 linked to the Russell 2000 index, the S&P 500 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Interest accrues at an 8.35% annualized rate for each day that each asset closes at or above the coupon barrier, 70% of the initial index level. Interest is payable quarterly.
The payout at maturity will be par unless any asset falls by more than 70%, in which case investors will be fully exposed to any losses of the least performing asset.
The notes will be callable at par on any interest payment date after one year.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable range accrual securities
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| Underlying index: | Russell 2000 index, S&P 500 index and iShares MSCI Emerging Markets ETF
|
| Amount: | $2,254,000
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| Maturity: | Jan. 12, 2024
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| Coupon: | 8.35% annualized for each day that each asset closes at or above 70% coupon barrier, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless least performing asset falls by more than 30%, in which case full exposure to any losses of least performing asset
|
| Call option: | At par on any interest payment date beginning Jan. 14, 2019
|
| Initial level: | 2,751.29 for S&P, 1,560.099 for Russell, $49.05 for ETF
|
| Coupon barriers | 1,925.903 for S&P, 1,092.069 for Russell, $34.335 for ETF, 70% of initial level
|
| Trigger levels: | 1,193.725, 70% of initial level
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| Pricing date: | Jan. 9
|
| Settlement date: | Jan. 12
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.25%
|
| Cusip: | 61768CXZ5
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