Published on 5/21/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5.25 million callable contingent income securities linked to S&P
By Kiku Steinfeld
Chicago, May 21 – Morgan Stanley Finance LLC priced $5.25 million of callable contingent income securities due May 20, 2030 linked to 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 coupon at the rate of 7.7% per year if the index closes at or above the coupon barrier level, 75% of the initial index level, on the observation date for that quarter.
If the index finishes at or above the downside threshold level, 60% of its initial level, the payout at maturity will be par. If the index finishes below the downside threshold level, investors will be fully exposed to the index’s decline from its initial level.
Beginning in November, 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
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| Issue: | Callable contingent income securities
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| Underlying index: | S&P 500
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| Amount: | $5,249,000
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| Maturity: | May 20, 2030
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| Coupon: | 7.7% per year, payable quarterly if index closes at or above coupon barrier level on observation date for that quarter
|
| 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 in November, callable at par on any interest payment date
|
| Initial level: | 2,863.70
|
| Coupon barrier level: | 2,147.775, or 75% of initial level
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| Downside threshold: | 1,718.22, or 60% of initial level
|
| Pricing date: | May 15
|
| Settlement date: | May 20
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61771BEJ9
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