Chicago, Nov. 21 – Morgan Stanley Finance LLC priced $2.54 million of contingent coupon securities with one-time automatic redemption feature due Nov. 12, 2024 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
A contingent coupon will only be paid during the first two years of the securities.
If during those first two years the index does not close below 80% of its initial level on every trading day during the relevant monthly monitoring period, investors will receive a monthly coupon based on an annual rate of 4.05%.
If the index never closes below 80% of its initial level during the first two years, then the notes will be redeemed at par plus the monthly coupon on Nov. 12, 2021.
If the notes have not been redeemed early, at maturity investors will receive par plus the index strike return.
The index strike return is the final index value minus the trigger level, divided by the initial index value. Accordingly, investors receive a positive return on their investment if the final index value is greater than or equal to the trigger level and a minimum payout of $200 per $1,000 principal amount of notes.
Morgan Stanley & Co. LLC is the underwriter.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent coupon securities with one-time automatic redemption feature
|
| Underlying index: | S&P 500
|
| Amount: | $2,540,000
|
| Maturity: | Nov. 12, 2024
|
| Coupon: | 4.05%, payable monthly during the first two years if during those first two years the index does not close below 80% of its initial level on every trading day during the relevant monthly monitoring period
|
| Price: | Par
|
| Payout at maturity: | Par plus the index strike return or final index value minus the trigger level, divided by the initial index value; i.e. if index finishes above trigger level, par plus index return plus 20% buffer; exposure to losses beyond 20% buffer
|
| Call: | If the index never closes below 80% of its initial level during the first two years, then the notes will be redeemed at par plus the monthly coupon on Nov. 12, 2021
|
| Initial level: | 3,085.18
|
| Knock-out level: | 2,468.144, 80% of initial value
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 12
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | None
|
| Cusip: | 61769HP58
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
