By Angela McDaniels
Tacoma, Wash., Aug. 31 – Morgan Stanley Finance LLC priced $5 million of additional leveraged CMS curve securities due Aug. 31, 2036 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer priced $1 million of the notes on Aug. 5. The issue size is now $6 million.
The notes are guaranteed by Morgan Stanley.
The interest rate is 9% for the first year. After that, it will be 20 times the spread of the 30-year ICE swap rate over the two-year ICE swap rate, subject to a minimum of zero and a maximum of 9% per year, multiplied by the proportion of days on which each index closes at or above its index reference level, 60% of its initial level. Interest is payable monthly.
If each index finishes at or above its barrier level, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worse-performing index.
Morgan Stanley & Co. LLC is the agent.
The issuer said it may further increase the issue size prior to the Aug. 31 settlement date but is not required to do so.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Leveraged CMS curve securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $6 million, increased from $1 million
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| Maturity: | Aug. 31, 2036
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| Coupon: | 9% for first year, then 20 times spread of 30-year ICE swap rate over two-year ICE swap rate, subject to minimum of zero and maximum of 9% per year, multiplied by proportion of days on which each index closes at or above index reference level; payable monthly
|
| Price: | Variable prices
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| Payout at maturity: | Par unless either index closes below barrier level, in which case full exposure to loss of lesser-performing index
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| Initial index levels: | 2,169.04 for S&P 500 and 1,238.031 for Russell 2000
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| Index reference levels: | 1,301.424 for S&P 500 and 742.819 for Russell 2000; 60% of initial levels
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| Barrier levels: | 1,084.520 for S&P 500 and 619.061 for Russell 2000; 50% of initial levels
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| Pricing date: | Aug. 5
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| Upsized: | Aug. 26
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| Settlement date: | Aug. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 4%
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| Cusip: | 61766YAL5
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