By Angela McDaniels
Tacoma, Wash., Dec. 23 – Morgan Stanley priced $1.95 million of 0% contingent buffer equity notes due June 28, 2017 linked to the SPDR S&P Bank exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event will occur if the final share price is less than the initial share price by more than 15%.
If a knock-out event has not occurred, the payout at maturity will be par plus 150% of the ETF return, subject to a minimum payout of par and a maximum payment of $1,214.50 per $1,000 principal amount of notes.
If a knock-out event has occurred, investors will be fully exposed to the ETF’s decline.
Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as placement agents.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent buffer equity notes
|
| Underlying ETF: | SPDR S&P Bank ETF
|
| Amount: | $1.95 million
|
| Maturity: | June 28, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If knock-out event has not occurred, par plus 150% of ETF return, subject to minimum payout of par and maximum payment of $1,214.50 per $1,000 principal amount of notes; if knock-out event has occurred, full exposure to ETF’s decline
|
| Knock-out event: | Final share price is less than initial share price by more than 15%
|
| Initial share price: | $33.43
|
| Final share price: | Average of ETF’s closing share prices on five trading days ending June 23, 2017
|
| Pricing date: | Dec. 18
|
| Settlement date: | Dec. 23
|
| Agent: | Morgan Stanley & Co. LLC
|
| Placement agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA
|
| Fees: | 1.25%
|
| Cusip: | 61761JS83
|
© 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.
