Published on 8/14/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.3 million contingent income callables tied to indexes, fund
By Susanna Moon
Chicago, Aug. 14 – Morgan Stanley Finance LLC priced $1.3 million of contingent income callable securities due Aug. 11, 2021 linked to the least performing of the S&P 500 index, the SPDR S&P Oil & Gas Exploration & Production ETF and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 10% if each underlying index or fund closes at or above its 60% coupon threshold on the determination date for that period.
The notes are callable at par plus the contingent coupon on any determination date after one year.
The payout at maturity will be par plus the contingent coupon unless any component finishes below its 60% barrier, in which case investors will lose 1% for each 1% decline of the worst performing component.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income callable securities
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| Underlyings: | S&P 500 index, the SPDR S&P Oil & Gas Exploration & Production ETF and the Euro Stoxx 50 index
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| Amount: | $1.3 million
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| Maturity: | Aug. 11, 2021
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| Coupon: | 10% annualized, payable semiannually that each index closes at or above 60% coupon barrier on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each index finishes at or above 60% downside threshold; otherwise, 1% loss for each 1% decline of worst performing index
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| Call option: | At par plus contingent coupon on any determination date beginning Aug. 13, 2018
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| Initial levels: | 2,474.92 for S&P, $30.71 for oil fund and 3,515.63 for Stoxx
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| Barrier levels: | 1,484.952 for S&P, $18.426 for oil fund and 2,109.378 for Stoxx; 60% of initial levels
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| Pricing date: | Aug. 8
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| Settlement date: | Aug. 11
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.4%
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| Cusip: | 61768CNW3
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