Published on 7/10/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $5 million 7.85% contingent income callables on indexes
By Susanna Moon
Chicago, July 10 – Morgan Stanley Finance LLC priced $5 million of contingent income callable securities due Jan. 4, 2021 linked to the S&P 500 index, the Russell 2000 index and the Euro Stoxx Banks index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.85% if each index closes at or above its 60% coupon barrier on the observation date for that quarter.
The notes are callable at par on any review date after six months.
The payout at maturity will be par unless any underlying index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying indexes: | Euro Stoxx Banks, S&P 500 and Russell 2000
|
| Amount: | $5 million
|
| Maturity: | Jan. 4, 2021
|
| Coupon: | 7.85% annualized, payable quarterly if each index closes at or above 60% coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If any index finishes at or above 60% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call option: | At par on any quarterly call date beginning Jan. 3, 2019
|
| Initial levels: | 110.45 for Stoxx banks, 2,718.37 for S&P and 1,643.069 for Russell
|
| Downside thresholds: | 66.27 for Stoxx banks, 1,631.022 for S&P and 985.841 for Russell, 60% of initial levels
|
| Pricing date: | June 29
|
| Settlement date: | July 5
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61768C6R3
|
|
|
|
|
© 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.
