Published on 6/2/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $19.91 million callable contingent income securities linked to indexes
By Angela McDaniels
Tacoma, Wash., June 2 – Morgan Stanley Finance LLC priced $19.91 million of callable contingent income securities due Dec. 4, 2019 linked to 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.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at the rate of 8.5% per year if each index closes at or above its coupon barrier level, 75% of its initial level, on each trading day during that quarter.
The payout at maturity will be par unless the lowest-performing index finishes below its downside threshold level, 65% of its initial level, in which case investors will be fully exposed to the decline of the lowest-performing index from its initial level.
Beginning Dec. 5, 2017, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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Amount: | $19,908,000
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Maturity: | Dec. 4, 2019
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Coupon: | 8.5% per year, payable quarterly if each index closes at or above coupon barrier level on each trading day during that quarter
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold level, par; if any index finishes below downside threshold level, full exposure to decline of lowest-performing index from its initial level
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Call option: | Beginning Dec. 5, 2017, at par on any interest payment date
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Initial index levels: | 2,411.80 for S&P 500, 1.370.208 for Russell 2000 and 3,554.59 for Euro Stoxx 50
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Coupon barrier levels: | 1,808.85 for S&P 500, 1,027.656 for Russell 2000 and 2,665.943 for Euro Stoxx 50; 75% of initial levels
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Downside thresholds: | 1,567.67 for S&P 500, 890.635 for Russell 2000 and 2,310.484 for Euro Stoxx 50; 65% of initial levels
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Pricing date: | May 31
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Settlement date: | June 5
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2%
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Cusip: | 61768CKG1
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