Morgan Stanley plans airbag performance notes on Energy Select fund

By Toni Weeks

San Luis Obispo, Calif., Dec. 18 – Morgan Stanley plans to price 0% airbag performance securities due Dec. 31, 2019 linked to the Energy Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 141% to 146% of any fund gain, with the exact participation rate to be set at pricing. If the fund falls by up to 20%, the payout will be par. If the fund falls by more than 20%, investors will receive a number of shares equal to $1,000 divided by the conversion price, which is 80% of the initial price.

The notes (Cusip: 61764M380) are expected to price Dec. 26 and settle Dec. 31.

Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is the dealer.

© 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.