Published on 5/2/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.41 million callable contingent income notes on indexes
By Sarah Lizee
Olympia, Wash., May 2 – Morgan Stanley Finance LLC priced $3.41 million of callable contingent income securities due May 3, 2024 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each month the notes will pay a contingent coupon at the rate of 8% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par.
If any index finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing index from its initial level.
Beginning May 5, 2020, the notes will be callable quarterly at par.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
|
| Amount: | $3,408,000
|
| Maturity: | May 3, 2024
|
| Coupon: | 8% per year, payable monthly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below downside threshold, full exposure to decline of least-performing index from its initial level
|
| Call option: | Starting May 5, 2020, notes are callable at par quarterly
|
| Initial levels: | 7,781.456 for Nasdaq, 1,591.211 for Russell and 26,592.91 for Dow
|
| Coupon barriers: | 5,447.019 for Nasdaq, 1,113.848 for Russell and 18,615.037 for Dow; 70% of initial levels
|
| Downside thresholds: | 4,668.874 for Nasdaq, 954.727 for Russell and 15,955.746 for Dow; 60% of initial levels
|
| Pricing date: | April 30
|
| Settlement date: | May 3
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 0.65%
|
| Cusip: | 61768D5S0
|
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