Published on 10/28/2016 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5.16 million capped leveraged buffered notes tied to indexes
By Marisa Wong
Morgantown, W.Va., Oct. 28 – Morgan Stanley Finance LLC priced $5.16 million of 0% capped leveraged buffered notes due May 1, 2018 linked to a 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 Euro Stoxx 50 index with a 37% weight, the FTSE 100 index with a 23% weight, the Tokyo Stock Price index with a 23% weight, the Swiss Market index with a 9% weight and the S&P/ASX 200 index with an 8% weight.
If the basket return is positive, the payout at maturity will be par plus 300% of the basket return, up to a maximum settlement amount of $1,160.50 per $1,000 principal amount.
If the basket return is zero or negative but not below negative 10%, the payout will be par.
If the basket return is less than negative 10%, investors will lose 1.1111% for every 1% decline beyond 10%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Capped leveraged buffered notes
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| Underlying indexes: | Euro Stoxx 50 (37% weight), FTSE 100 (23% weight), Topix (23% weight), Swiss Market (9% weight) and S&P/ASX 200 (8% weight)
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| Amount: | $5,155,000
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| Maturity: | May 1, 2018
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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 300% of basket gain, subject to maximum return of 16.05%; par if basket falls by up to 10%; 1.1111% loss for every 1% decline beyond 10%
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| Initial index levels: | 3,093.86 for Euro Stoxx, 6,986.40 for FTSE, 1,367.61 for Topix, 7,991.88 for Swiss Market and 5,408.486 for S&P/ASX
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| Pricing date: | Oct. 24
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.33%
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| Cusip: | 61768CBB2
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