Published on 9/3/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5.39 million leveraged buffered notes linked to ETF basket
By Angela McDaniels
Tacoma, Wash., Sept. 3 – Morgan Stanley priced $5.39 million of 0% securities with leveraged upside participation to a cap and fixed percentage buffered downside due March 3, 2020 linked to a basket of unequally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket components are the SPDR S&P 500 ETF Trust with a 50% weight, the iShares Russell 2000 ETF with a 15% weight, the iShares MSCI EAFE ETF with a 15% weight, the iShares MSCI Emerging Markets ETF with a 10% weight, the PowerShares DB Commodity Index Tracking Fund with a 5% weight and the Vanguard REIT ETF with a 5% weight.
If the basket return is positive, the payout at maturity will be par plus 150% of the basket return, subject to a maximum payout of $1,530 per $1,000 principal amount of notes. Investors will receive par if the basket falls by up to 15% and will lose 1% for every 1% decline beyond 15%.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents, and Wells Fargo Advisors, LLC is a dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Securities with leveraged upside participation to a cap and fixed percentage buffered downside
|
| Underlying basket: | SPDR S&P 500 ETF Trust (50% weight), iShares Russell 2000 ETF (15% weight), iShares MSCI EAFE ETF (15% weight), iShares MSCI Emerging Markets ETF (10% weight), PowerShares DB Commodity Index Tracking Fund (5% weight) and Vanguard REIT ETF (5% weight)
|
| Amount: | $5,387,000
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| Maturity: | March 3, 2020
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket gains, par plus 1.5 times basket return, subject to maximum return of 53%; par if basket falls by up to 15%; exposure to losses beyond 15%
|
| Pricing date: | Aug. 31
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| Settlement date: | Sept. 3
|
| Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Fees: | 3.43%
|
| Cusip: | 61761JF53
|
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