Published on 12/27/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 contingent income securities on indexes
By Devika Patel
Knoxville, Tenn., Dec. 27 – Morgan Stanley Finance LLC priced $500,000 of contingent income securities due Dec. 27, 2033 linked to the worst performing of 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 notes will pay a fixed quarterly coupon at an annual rate of 6.5% for the first five years. Beginning on March 21, 2024, the coupon will be a contingent quarterly payment at an annual rate of 6.5% if each index closes at or above its coupon barrier level, 65% of its initial level, on the observation date for that quarter.
The payout at maturity will be par plus any final coupon unless either index finishes below its 50% downside threshold level, in which case investors will lose 1% for each 1% decline of the worst 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 and S&P 500
|
| Amount: | $500,000
|
| Maturity: | Dec. 27, 2033
|
| Coupon: | 6.5% for first five years, starting on March 21, 2024, 6.5% for each quarter that both indexes close at or above coupon barrier level on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus any coupon unless either index finishes below its downside threshold level, in which case investors will lose 1% for each 1% decline of the worst performing index from initial level
|
| Initial levels: | 1,292.086 for Russell and 2,416.62 for S&P 500
|
| Coupon barrier levels: | 839.856 for Russell and 1,570.803 for S&P 500; 65% of initial levels
|
| Downside thresholds: | 646.043 for Russell and 1,208.31 for S&P 500; 50% of initial levels
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 27
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61768DSY2
|
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