Published on 10/30/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $824,000 contingent income notes tied to indexes
By Marisa Wong
Morgantown, W.Va., Oct. 30 – Morgan Stanley Finance LLC priced $824,000 of contingent income securities due Oct. 29, 2032 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The coupon will be fixed at 6.25% for the first five years. After that, the notes will pay a contingent quarterly coupon at an annual rate of 6.25% if each index closes at or above its 60% coupon barrier on the review date for that quarter.
The payout at maturity will be par unless either index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $824,000
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| Maturity: | Oct. 29, 2032
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| Coupon: | 6.25% per year for five years, payable quarterly; beginning January 2023, 6.25% per year, payable each quarter that each index closes at or above coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index finishes below 50% downside threshold, in which case 1% loss for each 1% decline of worse performing index
|
| Initial index levels: | 1,497.459 for Russell, 2,560.40 for S&P
|
| Coupon barriers: | 898.475 for Russell, 1,536.24 for S&P; 60% of initial levels
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| Downside thresholds: | 748.730 for Russell, 1,280.20 for S&P; 50% of initial levels
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61768CRP4
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