Published on 7/11/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.32 million 7.2% contingent income callables on indexes
By Susanna Moon
Chicago, July 11 – Morgan Stanley Finance LLC priced $3.32 million of contingent income callable securities due July 5, 2023 linked to the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.2% if each index closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes are callable at par on any review date after six months.
The payout at maturity will be par unless any underlying index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
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 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $3,315,000
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Maturity: | July 5, 2023
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Coupon: | 7.2% annualized, payable quarterly if each index closes at or above 60% coupon barrier on review date for that quarter
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Price: | Par
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Payout at maturity: | If any index finishes at or above 50% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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Call option: | At par on any quarterly call date beginning Jan. 7, 2019
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Initial levels: | 2,718.37 for S&P, 1,643.069 for Russell and 24,271.41 for Dow
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Coupon barriers: | 1,631.022 for S&P, 985.841 for Russell and 14,562.846 for Dow, 60% of initial levels
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Downside thresholds: | 1,359.185 for S&P, 821.535 for Russell and 12,135.705 for Dow, 50% 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: | 0.875%
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Cusip: | 61768C5Q6
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