Published on 12/30/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.35 million contingent income notes on Russell, Euro Stoxx
By Susanna Moon
Chicago, Dec. 30 - Morgan Stanley priced $3.35 million of contingent income participation securities due Dec. 26, 2028 linked to the worse performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be fixed at 7% for the first five years, payable monthly. After that, the notes will pay a contingent coupon at an annual rate of 7% for each month that each index closes at or above its respective barrier level, 50% of the initial level, on the observation date for that month.
If each index finishes at or above its 50% barrier level, the payout at maturity will be par plus the final monthly coupon.
Otherwise, investors will be fully exposed to any losses of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income participation securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $3,346,000
|
| Maturity: | Dec. 26, 2028
|
| Coupon: | 7% initially, payable monthly; beginning January 2019, contingent coupon of 7% annualized for each month that each index closes at or above coupon barrier level for that month
|
| Price: | Par
|
| Payout at maturity: | If each index finishes above barrier, par plus final monthly coupon; otherwise, full exposure to any losses of worse performing index
|
| Initial index levels: | 1,146.47 for Russell, 3,049.35 for Euro Stoxx
|
| Barrier levels: | 573.235 for Russell, 1,524.675 for Euro Stoxx; 50% of initial levels
|
| Pricing date: | Dec. 20
|
| Settlement date: | Dec. 26
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JND7
|
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