By Angela McDaniels
Tacoma, Wash., Dec. 28 - Morgan Stanley expects to increase the outstanding amount of its 0% exchange-traded notes due July 1, 2031 linked to the S&P 500 Oil Hedged index by $8,625,000, according to a 424B2 filing with the Securities and Exchange Commission.
The company has registered to sell up to $10 million of the notes. It sold $1 million of the notes on June 28. As of Dec. 28, $8,625,000 principal amount was held for sale by the agent, Morgan Stanley & Co. LLC. The issuer expects the agent to offer and sell these notes to other dealers and investors at varying prices from time to time.
The payout at maturity will be par of $25 plus the index return, which could be positive or negative, minus the tracking fee, which is 0.79% per year.
The notes are putable at any time, subject to a minimum of 100,000 notes and a fee of 0.125%. The notes are callable at any time, and they will be automatically redeemed if the notes' intraday indicative value on any day has declined by at least 50% from the closing indicative value as of the most recent rebalancing date for the index.
The notes have been approved for listing on NYSE Arca under the symbol "BARL."
The index provides exposure to the S&P 500 Total Return index and the near-term Nymex West Texas Intermediate light sweet crude and ICE Brent crude oil futures contracts. A $100 investment in the ETNs provides a $100 exposure to the S&P 500 Total Return and a $50 exposure to each of the two futures contracts. Each exposure is rebalanced on a monthly basis.
| Issuer: | Morgan Stanley
|
| Issue: | Exchange-traded notes
|
| Underlying index: | S&P 500 Oil Hedged index
|
| Amount: | Up to $10 million
|
| Maturity: | July 1, 2031
|
| Coupon: | 0%
|
| Price: | Par of $25
|
| Payout at maturity: | Par plus index return minus tracking fee of 0.79% per year
|
| Put option: | At any time, subject to minimum of 100,000 notes and 0.125% fee
|
| Call option: | At any time
|
| Automatic redemption: | If intraday indicative value on any day has declined by at least 50% from closing indicative value as of most recent rebalancing date for index
|
| Initial index level: | 6,956.67
|
| Inception date: | June 28
|
| Settlement date: | July 1 for original issue
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | None
|
| Listing: | NYSE Arca: BARL
|
| Cusip: | 61760E390
|
© 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.
