Published on 1/3/2020 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.43 million callable contingent income securities linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 3 – Morgan Stanley Finance LLC priced $1.43 million of callable contingent income securities due June 29, 2023 linked to the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8.25% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that quarter.
If the lowest-performing index finishes at or above its knock-in level, 70% of its initial level, the payout at maturity will be par plus the final coupon, if any. If the lowest-performing index finishes below its knock-in level, investors will be fully exposed to the decline of the lowest-performing index from its initial level.
Beginning July 1, 2020, the notes will be callable at par on any interest payment date.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $1,434,000
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| Maturity: | June 29, 2023
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| Coupon: | 8.25% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above knock-in level, par; if any index finishes below knock-in level, full exposure to decline of lowest-performing index from its initial level
|
| Call option: | Beginning July 1, 2020 at par on any interest payment date
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| Initial levels: | 1,677.67 for Russell, 3,239.91 for S&P, 3,782.27 for Stoxx
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| Coupon barriers: | 1,174.369 for Russell, 2,267.937 for S&P and 2,647.589 for Stoxx; 70% of initial levels
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| Knock-in levels: | 1,174.369 for Russell, 2,267.937 for S&P and 2,647.589 for Stoxx; 70% of initial levels
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| Pricing date: | Dec. 26
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| Settlement date: | Dec. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
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| Cusip: | 61769H4M4
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