By Marisa Wong
Morgantown, W.Va., Nov. 13 – Morgan Stanley Finance LLC priced $4.05 million of 11.5% trigger securities due May 15, 2018 linked to the spread of the 30-year U.S. dollar ICE swap rate minus the two-year U.S. dollar ICE swap rate, according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Interest is payable monthly.
If the final swap rate spread is at least 50% of the initial spread, the payout at maturity will be par. If the final spread is less than 50% of the initial spread, investors will lose 1% for each 1% the final spread is less than the initial spread.
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 trigger securities with downside principal exposure
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| Underlying spread: | 30-year U.S. dollar ICE swap rate minus the two-year U.S. dollar ICE swap rate
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| Amount: | $4.05 million
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| Maturity: | May 15, 2018
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| Coupon: | 11.5%, payable monthly
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| Price: | Par
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| Payout at maturity: | Par if final spread is at least 50% of initial spread; otherwise, 1% loss for each 1% decline of final spread from initial spread
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| Initial spread: | 0.6800%
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| Threshold spread: | 0.3400%, 50% of initial spread
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| Pricing date: | Nov. 8
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| Settlement date: | Nov. 15
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.75%
|
| Cusip: | 61766YCB5
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