New York, May 12 – Morgan Stanley Finance LLC priced $2.42 million of fixed-rate buffered securities due June 15, 2018 linked to the spread between the 30-year U.S. dollar ICE swap rate and the two-year U.S. dollar ICE swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The securities will pay a 10% coupon monthly.
At maturity if the 30-year swap rate minus the two-year swap rate is greater than or equal to 0.481, 50% of the initial spread, the payout will be par.
Investors will lose at double the rate of decline of the spread between the two rates beyond 50%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Fixed-rate buffered securities
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| Underlying: | 30-year U.S. dollar ICE swap rate and the two-year U.S. dollar ICE swap rate
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| Amount: | $2,423,000
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| Maturity: | June 15, 2018
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| Coupon: | 10%, payable monthly
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| Price: | Varying
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| Payout at maturity: | Par, if the 30-year swap rate minus the two-year swap rate is greater than or equal to 0.481, 50% of the initial spread, otherwise double the rate of decline of the spread beyond 50%
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| Initial spread: | 0.961
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| Threshold level: | 0.481, 50% of initial spread
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| Pricing date: | May 10
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| Settlement date: | May 15
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| Agent: | Morgan Stanley & Co. LLC
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| Fee: | 3%
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| Cusip: | 61766YBK6
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