Published on 5/26/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $734,000 contingent income notes linked to indexes
By Angela McDaniels
Tacoma, Wash., May 26 – Morgan Stanley Finance LLC priced $734,000 of contingent income securities due May 28, 2027 linked to worst performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
During the first four years, the interest rate is fixed at 7% per year. In years five through 10, the notes will pay a contingent coupon at the rate of 7% per year if each index closes at or above its barrier level, 60% of the initial index level, on the determination date for that month.
The payout at maturity will be par unless any index finishes below its barrier level, in which case investors will share in the decline of the least-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
|
| Amount: | $734,000
|
| Maturity: | May 28, 2027
|
| Coupon: | In years one through four, 7% per year; in years five through 10, 7% per year if each index closes at or above barrier level on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below barrier level, in which case 1% loss for each 1% decline of least-performing index from initial level
|
| Initial index levels: | 1,382.509 for Russell 2000, 2,404.39 for S&P 500 and 3,586.62 for Euro Stoxx 50
|
| Barrier levels: | 829.505 for Russell 2000, 1,442.634 for S&P 500 and 2,151.972 for Euro Stoxx 50; 60% of initial levels
|
| Pricing date: | May 24
|
| Settlement date: | May 30
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61768CHW0
|
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