By Sarah Lizee
Olympia, Wash., Oct. 31 – Morgan Stanley Finance LLC priced $5 million of callable buffered range accrual securities due April 30, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will accrue at 5.8% for each day that the index closes at or above its coupon barrier, which is 80% of the initial level. Interest is payable monthly.
The payout at maturity will be par unless the index falls by more than 20%, in which case investors will be exposed to any losses beyond the buffer.
The notes will be callable at par on any interest payment date after one year.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable buffered range accrual securities
|
| Underlying index: | S&P 500
|
| Amount: | $5 million
|
| Maturity: | April 30, 2026
|
| Coupon: | 5.8% annualized for each day that index closes above 80% coupon barrier; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless index falls by more than 20%, in which case exposure to losses beyond buffer
|
| Call option: | At par on any interest payment date beginning in October 2019
|
| Initial level: | 2,658.69
|
| Coupon barrier: | 2,126.952, 80% of initial level
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 4%
|
| Cusip: | 61768DGF6
|
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