By Angela McDaniels
Tacoma, Wash., May 12 – Morgan Stanley priced $3.1 million of 0% buffered participation securities due May 13, 2020 linked to a basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.
The basket components are the WisdomTree Europe Hedged Equity Fund, the iShares Russell 2000 exchange-traded fund and the Energy Select Sector SPDR fund.
The basket components will not be weighted at the beginning of the term of the securities. Instead, on the May 8, 2020 determination date, the component with the best performance will be allocated a weighting of 45%, the basket component with the second-best performance will be allocated a weighting of 35% and the basket component with the worst performance will be allocated a weighting of 20%.
If the basket return is positive, the payout at maturity will be par of $10 plus the basket return. Investors will receive par if the basket return is negative but not less than negative 10% and will lose 1% for every 1% that the basket declines beyond 10%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Buffered participation securities
|
| Underlying ETFs: WisdomTree Europe Hedged Equity Fund, iShares Russell 2000 ETF and Energy Select Sector SPDR fund
|
| Weightings: | 45% for fund with best performance on May 8, 2020, 35% for fund with second-best performance and 20% for fund with worst performance
|
| Amount: | $3,101,390
|
| Maturity: | May 13, 2020
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket return is positive, par plus basket return; par if basket return is negative but not less than negative 10%; 1% loss for every 1% that basket declines beyond 10%
|
| Initial prices: | $65.67 for Europe fund, $122.64 for small-cap fund and $81.76 for energy fund
|
| Pricing date: | May 8
|
| Settlement date: | May 13
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61764V794
|
© 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.
