Published on 2/21/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.13 million callable contingent income notes on index, fund
By Wendy Van Sickle
Columbus, Ohio, Feb. 21 – Morgan Stanley Finance LLC priced $1.13 million of callable contingent income securities due Feb. 17, 2022 linked to the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent semiannual coupon at the rate of 10.8% per year if each asset closes at or above the coupon barrier level, 65% of the initial asset level, on the observation date for that period.
If each asset finishes at or above the downside threshold level, 65% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the lesser-performing asset’s decline from its initial level.
Beginning Aug. 22, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
|
Guarantor: | Morgan Stanley
|
Issue: | Callable contingent income securities
|
Underlying assets: | S&P 500 index, SPDR S&P Biotech ETF
|
Amount | $1,131,000
|
Maturity: | Feb. 17, 2022
|
Coupon: | 10.8% per year, payable semiannually if each asset closes at or above coupon barrier level on observation date for that period
|
Price: | Par
|
Payout at maturity: | If each asset finishes at or above downside threshold level, par; if asset finishes below downside threshold level, full exposure to laggard asset’s decline from initial level
|
Call option: | Beginning Aug. 22, callable at par on any interest payment date
|
Initial levels: | 2,775.60 for index, $86.59 for fund
|
Coupon barrier/threshold: | 1,804.14 for index, $56.24 for fund, 65% of initial level
|
Pricing date: | Feb. 15
|
Settlement date: | Feb. 22
|
Agent: | Morgan Stanley & Co. LLC
|
Fees: | 0%
|
Cusip: | 61768DG74
|
|
© 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.