Published on 4/5/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5.56 million capped trigger gears on index basket
By Sarah Lizee
Olympia, Wash., April 5 – Morgan Stanley Finance LLC priced $5.56 million of 0% capped trigger gears due April 7, 2022 linked to an unequally-weighted basket of 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 40% weight, the MSCI EAFE index with a 30% weight, the S&P Midcap 400 index with a 20% weight and the MSCI Emerging Markets index with a 10% weight.
If the basket return is greater than zero, the payout at maturity will be par of $10 plus two times the basket return, capped at par plus 30%.
Investors will receive par if the basket declines by 25% or less and be fully exposed to the basket’s decline from its initial level if it declines by more than 25%.
Morgan Stanley & Co. LLC and UBS Financial Services Inc. are the agents.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Capped trigger gears
|
| Underlying basket: | S&P 500 (40% weight), MSCI EAFE (30% weight), S&P Midcap 400 (20% weight), MSCI Emerging Markets (10% weight)
|
| Amount: | $5.56 million
|
| Maturity: | April 7, 2022
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 2 times any basket gain, capped at par plus 30%; par if basket declines by 25% or less; full exposure to basket’s decline from its initial level if it declines by more than 25%
|
| Initial levels: | 2,873.40 for S&P 500, 1,916.71 for EAFE, 1,924.65 for Midcap, 1,079.80 for EM
|
| Pricing date: | April 3
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| Settlement date: | April 8
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| Underwriter: | Morgan Stanley & Co. LLC, UBS Financial Services Inc.
|
| Fees: | 2.5%
|
| Cusip: | 61768X846
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