By Jennifer Chiou
New York, Oct. 2 - Morgan Stanley priced $9,928,000 of contingent income securities due Oct. 3, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment of 7.2% per year, or $18.00 per quarter per $1,000 principal amount of notes, if the index closes at or above the downside threshold level on the determination date for that quarter. Otherwise, no coupon will be paid that quarter.
If the final index level is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment, if any.
If the final index level is less than the downside threshold level, investors will be fully exposed to the decline of the index from the initial level.
Morgan Stanley & Co. LLC will be the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying index: | S&P 500
|
| Amount: | $9,928,000
|
| Maturity: | Oct. 3, 2028
|
| Coupon: | 7.2% annualized if index closes at or above downside threshold level on observation date for that quarter; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above downside threshold level, par plus contingent quarterly coupon; otherwise, full exposure to losses
|
| Initial index level: | 1,681.55
|
| Downside threshold level: | 1,000
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 3
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 3.5%
|
| Cusip: | 61761JLS6
|
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