By Angela McDaniels
Tacoma, Wash., April 26 – Morgan Stanley priced $15 million of 0% buffered jump securities due May 30, 2017 linked to the 10-year U.S. dollar ICE swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
If the final reference rate is greater than or equal to the threshold reference rate, 85% of the initial reference rate, the payout at maturity will be par plus 10.75%. Otherwise, investors will lose 1% for every 1% that the swap rate declines below the threshold reference rate.
Morgan Stanley & Co. LLC is the agent.
The issuer said it may increase the issue size prior to the settlement date, April 27, but is not required to do so.
Issuer: | Morgan Stanley
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Issue: | Buffered jump securities
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Underlying rate: | 10-year U.S. dollar ICE swap rate
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Amount: | $15 million
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Maturity: | May 30, 2017
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If final reference rate is greater than or equal to threshold reference rate, par plus 10.75%; otherwise, 1% loss for every 1% that swap rate declines beyond 15%
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Initial reference rate: | 1.748
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Threshold reference rate: | 1.486, 85% of initial reference rate
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Pricing date: | April 22
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Settlement date: | April 27
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 1.25%
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Cusip: | 61760QJP0
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