Published on 10/1/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 contingent income securities linked to indexes
By Sarah Lizee
Olympia, Wash., Oct. 1 – Morgan Stanley Finance LLC priced $500,000 of contingent income securities due Sept. 29, 2033 linked to the S&P 500 index, 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 monthly coupon at the annualized rate of 7% for the first five years. After that a monthly coupon at a rate of 7% per year will be paid only if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that month.
If the lowest-performing index finishes at or above its 50% downside threshold, the payout at maturity will be par plus the final coupon. If the lowest-performing index finishes below its downside threshold, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
|
| Amount: | $500,000
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| Maturity: | Sept. 29, 2033
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| Coupon: | 7% annualized, payable monthly for first five years; after that contingent coupon at a rate of 7% per year will be paid only if each index closes at or above its barrier level on a monthly observation date
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par plus coupon; if any index finishes below downside threshold, full exposure to decline of lowest-performing index from its initial level
|
| Initial levels: | 1,708.805 for Russell, 2,915.56 for S&P, 3,419.78 for Stoxx
|
| Coupon barriers: | 1,196.164 for Russell, 2,040.892 for S&P and 2,393.846 for Stoxx; 70% of initial levels
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| Downside thresholds: | 854.403 for Russell, 1,457.78 for S&P and 1,709.89 for Stoxx; 50% of initial levels
|
| Pricing date: | Sept. 25
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| Settlement date: | Sept. 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 5%
|
| Cusip: | 61768DEB7
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