Published on 4/30/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.32 million contingent income notes on Russell, Euro Stoxx
By Marisa Wong
Madison, Wis., April 30 - Morgan Stanley priced $3.32 million of contingent income securities due April 28, 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 notes will pay a fixed monthly coupon at a rate of 9% per year for the first three years. After that, the notes will pay a contingent monthly coupon at a rate of 9% per year if each underlying index closes at or above its respective coupon barrier level, 70% of the initial level, on the observation date for that month.
If each index finishes at or above the downside threshold level, 50% of the initial index level, the payout at maturity will be par and, if each index also finishes above the coupon barrier level, the contingent 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 securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $3.32 million
|
| Maturity: | April 28, 2028
|
| Coupon: | 9% for first three years, payable monthly; after that, 9% payable only if each index closes at or above coupon barrier level on observation date for that month; otherwise, no coupon for that month
|
| Price: | Par
|
| Payout at maturity: | If each index closes at or above downside threshold level, par plus final coupon, if any; full exposure to decline of worse performing index if either index finishes below downside threshold level
|
| Initial index levels: | 940.28 for Russell and 2,704.41 for Euro Stoxx
|
| Coupon barrier levels: | 658.196 for Russell and 1,893.087 for Euro Stoxx; 70% of initial levels
|
| Downside thresholds: | 470.14 for Russell and 1,352.205 for Euro Stoxx; 50% of initial levels
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JEX3
|
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