Published on 3/31/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5.77 million trigger phoenix notes linked to indexes
By Angela McDaniels
Tacoma, Wash., March 31 – Morgan Stanley priced $5.77 million of trigger phoenix callable optimization securities due March 31, 2020 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is 9.64% per year.
If the notes are not called and each index finishes at or above its barrier level, the payout at maturity will be par. Otherwise, investors will be exposed to the decline of the worst-performing index from its initial level.
Beginning March 30, 2016, the notes are callable at par on any quarterly observation date.
Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger phoenix callable optimization securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
|
| Amount: | $5,771,000
|
| Maturity: | March 31, 2020
|
| Coupon: | Each quarter, notes pay contingent coupon at rate of 9.64% per year if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above barrier level, par; otherwise, full exposure to decline of worst-performing index from initial level
|
| Call option: | At par on any quarterly observation date from March 30, 2016 onward
|
| Initial levels: | 2,061.02 for S&P 500, 1,240.409 for Russell 2000 and 3,679.03 for Euro Stoxx 50
|
| Barrier levels: | 1,442.71 for S&P 500, 868.286 for Russell 2000 and 2,575.32 for Euro Stoxx 50; 70% of initial levels
|
| Pricing date: | March 27
|
| Settlement date: | March 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | UBS Financial Services Inc.
|
| Fees: | 2.5%
|
| Cusip: | 61764V539
|
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