By Wendy Van Sickle
Columbus, Ohio, Nov. 25 – Morgan Stanley Finance LLC priced $500,000 of callable contingent income securities due Nov. 23, 2022 linked to the Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a coupon at the rate of 13.25% per year if the stock closes at or above the coupon barrier level, 55% of the initial stock level, on the observation date for that quarter.
If the stock finishes at or above the downside threshold level, 55% of its initial level, the payout at maturity will be par. If the stock finishes below the downside threshold level, investors will be fully exposed to the stock’s decline from its initial level.
The notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying stock: | Tesla, Inc.
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Amount: | $500,000
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Maturity: | Nov. 23, 2022
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Coupon: | 13.25% per year, payable quarterly if stock closes at or above coupon barrier level on observation date for that quarter
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Price: | Par
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Payout at maturity: | If stock finishes at or above downside threshold level, par; if stock finishes below downside threshold level, full exposure to stock’s decline from initial level
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Call option: | Callable at par on any interest payment date
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Initial level: | $478.3786
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Coupon barrier level: | $263.10823, or 55% of initial level
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Downside threshold: | $263.10823, or 55% of initial level
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Pricing date: | Nov. 20
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Settlement date: | Nov. 25
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0%
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Cusip: | 61771EMJ4
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