Published on 6/27/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.13 million contingent income notes linked to S&P 500, Euro Stoxx
By Toni Weeks
San Luis Obispo, Calif., June 27 - Morgan Stanley priced $1.13 million of contingent income securities due June 28, 2028 linked to the worst performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at an annual rate of 9% for the first three years. After that, the notes will pay a contingent coupon at the annual rate of 9% if each index closes at or above its coupon barrier level, 69.5% of its initial level, on the related observation date for that month. Otherwise, no coupon will be paid that month.
If the final level of each index is greater than or equal to its downside threshold level, 50% of the initial level, the payout at maturity will be par plus the final monthly coupon, if any. If the final level of either index is less than its barrier level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | S&P 500, Euro Stoxx 50
|
| Amount: | $1,125,000
|
| Maturity: | June 28, 2028
|
| Coupon: | 9% per year for first three years, payable monthly; beginning June 2018, 9% per year if each index closes at or above coupon barrier level on observation date 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 worst-performing index if either index finishes below downside threshold level
|
| Initial index levels: | 1,588.03 for S&P 500 and 2,543.37 for Euro Stoxx 50
|
| Coupon barrier levels: | 1,103.681 for S&P 500 and 1,767.642 for Euro Stoxx 50, 69.5% of initial levels
|
| Downside threshold levels: | 794.015 for S&P 500 and 1,271.685 for Euro Stoxx 50; 50% of initial levels
|
| Pricing date: | June 25
|
| Settlement date: | June 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JGY9
|
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