Published on 9/28/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.59 million fixed-to-floaters on CMS rates, indexes
By Sarah Lizee
Olympia, Wash., Sept. 28 – Morgan Stanley Finance LLC priced $1.59 million of fixed-to-floating securities due Sept. 28, 2038 linked to the worst performing of 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 9% for the first two years. After that, it will accrue at 30 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 60% reference level, subject to a maximum interest rate of 9%. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par unless any index finishes below its 60% 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
|
| Issue: | Fixed-to-floating securities
|
| Underlying indexes: | S&P 500 index and Russell 2000 index
|
| Amount: | $1,594,000
|
| Maturity: | Sept. 28, 2038
|
| Coupon: | 9% for first two years; then, 30 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 9%, floor of zero; payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par unless any index falls by more than 40%, in which case full exposure to decline of worst performing index
|
| Initial levels: | 2,915.56 for S&P, 1,708.805 for Russell
|
| Reference levels: | 1,749.336 for S&P, 1,025.283 for Russell, 60% of initial levels
|
| Barrier levels: | 1,749.336 for S&P, 1,025.283 for Russell, 60% of initial levels
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61766YDH1
|
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