Published on 7/6/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $13.34 million callable contingent income notes on indexes
By Tali Rackner
Minneapolis, July 6 – Morgan Stanley Finance LLC priced $13.34 million of callable contingent income securities due Jan. 4, 2021 linked to the least performing of the S&P 500 index, the Nikkei 225 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 the rate of 8.75% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on each trading day that quarter.
If each index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus the final coupon, if any.
If any index finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing index from its initial level.
Beginning Jan. 3, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying indexes: | S&P 500, Nikkei 225 and Euro Stoxx 50
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Amount: | $13,335,000
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Maturity: | Jan. 4, 2021
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Coupon: | 8.75% per year, payable quarterly if each index closes at or above coupon barrier level on each trading day that quarter
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Price: | Par
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Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below downside threshold, full exposure to decline of least-performing index from its initial level
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Call option: | Beginning Jan. 3, notes are callable at par on any interest payment date
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Initial levels: | 2,718.37 for S&P, 22,304.51 for Nikkei and 3,395.6 for Stoxx
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Coupon barriers: | 1,902.859 for S&P, 15,613.157 for Nikkei and 2,376.92 for Stoxx; 70% of initial levels
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Downside thresholds: | 1,902.859 for S&P, 15,613.157 for Nikkei and 2,376.92 for Stoxx; 70% of initial levels
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Pricing date: | June 29
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Settlement date: | July 5
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.25%
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Cusip: | 61768C5K9
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