By Wendy Van Sickle
Columbus, Ohio, Jan. 8 – Morgan Stanley Finance LLC priced $306,658 of put warrants due March 24, 2021 linked to the inverse performance of the SPDR S&P 500 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.
The warrants are guaranteed by Morgan Stanley.
The notional amount is $1,000 per warrant. The premium amount and original issue price is $22 per warrant. The aggregate premium amount for the 13,939 warrants is $306,658.
If the final share level is less than the strike level, 100% of the initial share level, the warrants will be automatically exercised. The payout per warrant will be $1,000 multiplied by the bearish share return, which is the quotient of (a) the strike level minus the final share price divided by (b) the strike level.
In no event will the cash settlement amount exceed the maximum cash settlement amount of $1,000 per warrant, which would be payable only in the unlikely event that the final share price is $0.
The issuer noted that even if the bearish share return is positive (meaning that the final share level is less than the strike level), if the bearish share return is less than the 2.2% warrant premium percentage, investors will receive a cash settlement amount that is less than the premium amount.
If the final share level is greater than or equal to the strike level, the warrants will expire worthless and the cash settlement amount will be zero.
Morgan Stanley & Co. LLC and Rockefeller Financial LLC are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Put warrants
|
| Underlying ETF: | SPDR S&P 500 ETF trust
|
| Warrants: | 13,939
|
| Notional amount: | $1,000 each, or $13,939,000 total
|
| Price: | $22 each, or $306,658 total
|
| Expiration date: | March 19, 2021
|
| Cash settlement date: | March 24, 2021
|
| Payout: | If final share price is less than strike level, $1,000 multiplied by bearish share return, which is quotient of (a) strike level minus final share price divided by (b) strike level, subject to maximum payout of $1,000 per warrant; if final share price is greater than or equal to strike level, warrants will expire worthless and cash settlement amount will be zero
|
| Strike level: | $330, 100% of initial share level
|
| Final share price: | Closing price on expiration date
|
| Pricing date: | Dec. 23
|
| Settlement date: | Dec. 29
|
| Agents: | Morgan Stanley & Co. LLC and Rockefeller Financial LLC
|
| Fees: | None
|
| Cusip: | 61771J263
|
|
|
© 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.
