Published on 10/25/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2 million 10.7% contingent income callables on indexes
By Susanna Moon
Chicago, Oct. 25 – Morgan Stanley Finance LLC priced $2 million of contingent income callable securities due April 15, 2021 linked to the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.7% if each index closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes are callable at par on any review date after six months.
The payout at maturity will be par unless any underlying index finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
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, S&P 500 and Russell 2000
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Amount: | $2 million
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Maturity: | April 15, 2021
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Coupon: | 10.7% annualized, payable quarterly if each index closes at or above 75% coupon barrier on review date for that quarter
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Price: | Par
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Payout at maturity: | If each index finishes at or above 70% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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Call option: | At par on any quarterly call date beginning April 16, 2019
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Initial levels: | 3,209.19 for Stoxx, 2,728.37 for S&P and 1,545.38 for Russell
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Coupon barriers: | 2,406.893 for Stoxx, 2,046.278 for S&P and 1,159.035 for Russell, 75% of initial levels
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Downside thresholds: | 2,246.433 for Stoxx, 1,909.859 for S&P and 1,081.766 for Russell, 70% of initial levels
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Pricing date: | Oct. 11
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Settlement date: | Oct. 16
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.6%
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Cusip: | 61768DHQ1
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