Published on 2/26/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $24.24 million callable contingent income securities linked to indexes
By Sarah Lizee
Olympia, Wash., Feb. 26 – Morgan Stanley Finance LLC priced $24.24 million of callable contingent income securities due Feb. 26, 2026 linked to the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier level, 68.5% of its initial level, on the observation date that quarter.
If the lowest-performing index finishes at or above its knock-in level, 60% of its initial level, the payout at maturity will be par plus the final coupon, if any. If the lowest-performing index finishes below its knock-in level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
Beginning Aug. 26, the notes will be callable at par on any interest payment date.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying indexes: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
|
| Amount: | $24,239,000
|
| Maturity: | Feb. 26, 2026
|
| Coupon: | 7% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above knock-in level, par; if any index finishes below knock-in level, full exposure to decline of lowest-performing index from its initial level
|
| Call option: | Beginning Aug. 26 at par on any interest payment date
|
| Initial levels: | 28,992.41 for Dow, 1,678.609 for Russell, 3,337.75 for S&P
|
| Coupon barriers: | 19,859.801 for Dow, 1,149.847 for Russell, 2,286.359 for S&P; 68.5% of initial levels
|
| Knock-in levels: | 17,395.446 for Dow, 1,007.165 for Russell, 2,002.65 for S&P; 60% of initial levels
|
| Pricing date: | Feb. 21
|
| Settlement date: | Feb. 26
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.38%
|
| Cusip: | 61770FLW4
|
|
|
© 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.
