By Wendy Van Sickle
Columbus, Ohio, Oct. 31 – Morgan Stanley Finance LLC priced $1.14 million of floating-rate notes due Nov. 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.
Interest will accrue at a rate of 10% for each day that the 10-year dollar ICE swap rate is at or above the 70% threshold level. Interest will be payable monthly and cannot be less than zero.
The payout at maturity will be par unless the reference rate finishes below the 70% threshold, in which case investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Floating-rate notes
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| Underlying rate: | 10-year U.S. dollar ICE swap rate
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| Amount: | $1,137,000
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| Maturity: | Nov. 30, 2017
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| Coupon: | 10% per year multiplied by proportion of days on which reference rate is greater than or equal to threshold level; payable monthly
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| Price: | Varying prices
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| 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
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| Initial reference rate: | 1.635%
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| Threshold reference rate: | 1.145%, 70% of initial reference rate
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| Pricing date: | Oct. 27
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61766YAT8
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