Published on 1/24/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million callable contingent income notes on Stoxx, Russell
By Sarah Lizee
Olympia, Wash., Jan. 24 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due Jan. 14, 2022 linked to the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent semiannual coupon at the rate of 9.5% per year if each index closes at or above the coupon barrier level, 70% of the initial index level, on the observation date for that period.
If each index finishes at or above the downside threshold level, 70% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the lesser-performing index’s decline from its initial level.
Beginning July 25, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying index: | Euro Stoxx 50, Russell 2000
|
| Amount | $1 million
|
| Maturity: | Jan. 14, 2022
|
| Coupon: | 9.5% per year, payable semiannually if each index closes at or above coupon barrier level on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above downside threshold level, par; if index finishes below downside threshold level, full exposure to index’s decline from initial level
|
| Call option: | Beginning July 25, callable at par on any interest payment date
|
| Initial levels: | 3,134.92 for Stoxx, 1,482.501 for Russell
|
| Coupon barrier/threshold: | 2,194.444 for Stoxx, 1,037.751 for Russell, 70% of initial level
|
| Pricing date: | Jan. 18
|
| Settlement date: | Jan. 25
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61768DWK7
|
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