Published on 1/8/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.73 million buffered PLUS tied to index basket
By Wendy Van Sickle
Columbus, Ohio, Jan. 8 – Morgan Stanley Finance LLC priced $2.73 million of 0% buffered Performance Leveraged Upside Securities due Jan. 3, 2023 linked to an unequally weighted basket of five indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The basket consists of the S&P 500 index with a 50% weight, the MSCI EAFE index with a 20% weight and the S&P MidCap 400 index, Russell 2000 index, and the MSCI Emerging Markets index, each with a 10% weight.
The payout at maturity will be par plus 120% of any basket gain up to a maximum gain of 51.5%.
Investors will receive par if the basket falls by up to 25% and will lose 1% for each 1% decline beyond 25%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Buffered Performance Leveraged Upside Securities
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| Basket components: | S&P 500 index (60% weight), MSCI EAFE index (20% weight) S&P MidCap 400 index (10% weight) Russell 2000 index (10% weight), and MSCI Emerging Markets index (10% weight)
|
| Amount: | $2,726,500
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| Maturity: | Jan. 3, 2023
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If basket return is positive, par plus 120% of return, up to a 51.5% maximum gain; par if basket declines by 25% or less; exposure to losses beyond 25%
|
| Initial index levels: | 2,687.54 for S&P 500, 1,911.28 for S&P MidCap, 1,548.926 for Russell 2000, 2,043.31 for MSCI EAFE and 1,153.58 for MSCI Emerging Markets
|
| Pricing date: | Dec. 28
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| Settlement date: | Jan. 3
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
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| Cusip: | 61768K844
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