By Angela McDaniels
Tacoma, Wash., Sept. 30 – Morgan Stanley Finance LLC priced $3.5 million of floating-rate securities due Oct. 30, 2017 linked to the 10-year U.S. dollar ICE swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The interest rate is 10% per year multiplied by the proportion of days on which the reference rate is greater than or equal to the threshold level, 70% of the initial reference rate. Interest is payable monthly.
If the final reference rate is greater than or equal to the threshold reference level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the swap rate declines from its initial rate.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Floating-rate securities
|
| Underlying rate: | 10-year U.S. dollar ICE swap rate
|
| Amount: | $3.5 million
|
| Maturity: | Oct. 30, 2017
|
| Coupon: | 10% per year multiplied by proportion of days on which reference rate is greater than or equal to threshold level; payable monthly
|
| Price: | Varying prices
|
| Payout at maturity: | If final reference rate is greater than or equal to threshold reference rate, par; otherwise, 1% loss for every 1% that swap rate declines
|
| Initial reference rate: | 1.410%
|
| Threshold reference rate: | 0.987%, 70% of initial reference rate
|
| Pricing date: | Sept. 27
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| Settlement date: | Sept. 30
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
|
| Cusip: | 61766YAQ4
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