By Angela McDaniels
Tacoma, Wash., June 29 - Morgan Stanley sold $1 million of 0% exchange-traded notes due July 1, 2031 linked to the S&P 500 Oil Hedged index, according to a term sheet.
The company plans to issue up to $10 million of the notes. The remaining $9 million of notes will be sold at varying prices from time to time.
The payout at maturity will be par of $25 plus the index return, which could be positive or negative, minus the tracking fee, which is 0.79% per year.
The notes are putable at any time, subject to a minimum of 100,000 notes and a fee of 0.125%. The notes are callable at any time, and they will be automatically redeemed if the notes' intraday indicative value on any day has declined by at least 50% from the closing indicative value as of the most recent rebalancing date for the index.
The notes have been approved for listing on NYSE Arca under the symbol "BARL."
The index provides exposure to the S&P 500 Total Return index and the near-term Nymex West Texas Intermediate light sweet crude and ICE Brent crude oil futures contracts. A $100 investment in the ETNs provides a $100 exposure to the S&P 500 Total Return and a $50 exposure to each of the two futures contracts. Each exposure is rebalanced on a monthly basis.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Exchange-traded notes
|
| Underlying index: | S&P 500 Oil Hedged index
|
| Amount: | $1 million
|
| Maturity: | July 1, 2031
|
| Coupon: | 0%
|
| Price: | Par of $25
|
| Payout at maturity: | Par plus index return minus tracking fee of0.79% per year
|
| Put option: | At any time, subject to minimum of 100,000 notes and 0.125% fee
|
| Call option: | At any time
|
| Automatic redemption: | If intraday indicative value on any day has declined by at least 50% from closing indicative value as of most recent rebalancing date for index
|
| Initial index level: | 6,956.67
|
| Pricing date: | June 28
|
| Settlement date: | July 1
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | None
|
| Listing: | NYSE Arca: BARL
|
| Cusip: | 61760E390
|
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