Published on 3/26/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1.12 million callable contingent income notes on index, fund
By Sarah Lizee
Olympia, Wash., March 26 – Morgan Stanley Finance LLC priced $1.12 million of callable contingent income securities due March 22, 2022 linked to the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent semiannual coupon at the rate of 9% per year if each asset closes at or above the coupon barrier level, 65% of the initial asset level, on the observation date for that period.
If each asset finishes at or above the downside threshold level, 65% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the lesser-performing asset’s decline from its initial level.
Beginning Sept. 30, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying assets: | S&P 500 index, SPDR S&P Biotech ETF
|
| Amount | $1,117,000
|
| Maturity: | March 22, 2022
|
| Coupon: | 9% per year, payable semiannually if each asset closes at or above coupon barrier level on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each asset finishes at or above downside threshold level, par; if asset finishes below downside threshold level, full exposure to laggard asset’s decline from initial level
|
| Call option: | Beginning Sept. 30, callable at par on any interest payment date
|
| Initial levels: | 2,800.71 for index, $87.86 for fund
|
| Coupon barrier/threshold: | 1,820.462 for index, $57.109 for fund, 65% of initial level
|
| Pricing date: | March 22
|
| Settlement date: | March 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61768DU29
|
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