Published on 7/9/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $801,000 fixed-to-floaters on CMS rates, indexes
By Wendy Van Sickle
Columbus, Ohio, July 9 – Morgan Stanley Finance LLC priced $801,000 of fixed-to-floating securities due June 29, 2033 linked to the worst performing of the Euro Stoxx 50 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Interest will be fixed at 10% for the first two years. After that, it will accrue at 20 times the spread of the 30-year U.S. dollar ICE swap rate minus the two-year U.S. dollar ICE swap rate for each day that each index closes at or above its 55% reference level, subject to a maximum interest rate of 10%. Interest will be payable monthly and cannot be less than zero.
The payout at maturity will be par unless any index finishes below its 50% barrier level, in which case investors will be fully exposed to the decline of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Fixed-to-floating securities
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| Underlying indexes: | Euro Stoxx 50 index, S&P 500 index and Russell 2000 index
|
| Amount: | $801,000
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| Maturity: | June 29, 2033
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| Coupon: | 10% for first two years; then, 20 times spread of 30-year U.S. dollar ICE swap rate minus two-year U.S. dollar ICE swap rate for each day that each index closes at or above reference level, cap of 10%, floor of zero; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless any index falls by more than 50%, in which case full exposure to decline of worst performing index
|
| Initial levels: | 2,733.29 for S&P, 1,627.609 for Russell, 3,368.72 for Stoxx
|
| Reference levels: | 1,497.683 for S&P, 917.69 for Russell, 1,852.796 for Stoxx, 55% of initial levels
|
| Barrier levels: | 1,361.53 for S&P, 813.805 for Russell, 1,684.36 for Stoxx, 50% of initial levels
|
| Pricing date: | June 26
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| Settlement date: | June 29
|
| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4%
|
| Cusip: | 61766YDA6
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