Published on 5/1/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 contingent income securities on Russell, S&P 500
By Susanna Moon
Chicago, May 1 – Morgan Stanley Finance LLC priced $500,000 of contingent income securities due April 28, 2032 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be fixed at 7% for the first five years. After that, the notes will pay a contingent monthly coupon at an annual rate of 7% if each index closes at or above its 60% coupon barrier on the determination date for that month.
The payout at maturity will be par plus the contingent coupon unless either index finishes below its 50% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index.
The notes will be guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income securities
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| Underlying index: | S&P 500, Russell
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| Amount: | $500,000
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| Maturity: | April 28, 2032
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| Coupon: | 7% annually for first five years, then 7% annualized per month if each index closes above 60% coupon barrier on a monthly observation date
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| Price: | Par of $10.00
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| Payout at maturity: | Par unless either index finishes below its 50% downside threshold, in which case 1% loss per 1% decline of worse performing index
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| Initial levels: | 1,411.077 for Russell and 2,388.61 for S&P
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| Coupon barriers: | 846.64 for Russell and 1,433.166 for S&P; 60% of initial levels
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| Trigger levels: | 705.539 for Russell and 1,194.305 for S&P; 50% of initial levels
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| Pricing date: | April 25
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| Settlement date: | April 28
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| Underwriter: | Morgan Stanley & Co. LLC
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| Fees: | 3.5%
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| Cusip: | 61768CGV3
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