Published on 8/28/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.73 million contingent income notes on two indexes
By Susanna Moon
Chicago, Aug. 28 – Morgan Stanley priced $1.73 million of contingent income securities due Aug. 29, 2029 linked to the worst 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 6.05% for the first six years, payable monthly. After that, the notes will pay a contingent monthly coupon at an annual rate of 6.05% if each index closes at or above the 50% trigger level on the observation date for that month.
If each index finishes at or above the coupon barrier level, the payout at maturity will be par plus the final contingent coupon.
If each index finishes at or above 50% trigger level, the payout will be par.
Otherwise, investors will be fully exposed to any losses of the worst performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $1,726,000
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| Maturity: | Aug. 29, 2029
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| Coupon: | 6.05% annualized for six years, payable monthly; after that, 6.05% annualized if index closes at or above coupon barrier level for that month
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above its initial level, par plus the final contingent coupon; if each index finishes at or above trigger level, par; otherwise, full exposure to any losses of worst performing index
|
| Initial index levels: | 1,175.17 for Russell, 3,197.54 for Euro Stoxx
|
| Trigger levels: | 587.585 for Russell, 587.585 for Euro Stoxx; 50% of initial levels
|
| Pricing date: | Aug. 26
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| Settlement date: | Aug. 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JSJ9
|
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