Published on 12/7/2017 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.33 million 6.35% contingent income notes tied to indexes
By Susanna Moon
Chicago, Dec. 7 – Morgan Stanley Finance LLC priced $2.33 million of contingent income autocallable securities due Dec. 2, 2032 linked to the worst performing of the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be fixed at 6.35% for the first five years, payable quarterly. After that, the notes will pay a contingent quarterly coupon at an annual rate of 6.35% if each index closes at or above its 60% downside threshold on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any call review date after one year.
The payout at maturity will be par unless either index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000
|
| Amount: | $2,325,000
|
| Maturity: | Dec. 2, 2032
|
| Coupon: | 6.35%, payable quarterly, for first five years; after that, 6.35% annualized, payable quarterly, if each index closes at or above downside threshold on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
|
| Initial levels: | 1,513.309 for Russell and 3,564.02 for Stoxx
|
| Coupon barriers: | 907.985 for Russell and 2,138.412 for Stoxx, 60% of initial levels
|
| Downside thresholds: | 756.655 for Russell and 1,782.01 for Stoxx, 50% of initial levels
|
| Pricing date: | Nov. 27
|
| Settlement date: | Nov. 30
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as a distributor
|
| Fees: | 3.5%
|
| Cusip: | 61768CSV0
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
