By Angela McDaniels
Tacoma, Wash., Feb. 19 – Morgan Stanley Finance LLC priced $3 million of 0% securities with leveraged downside principal exposure due Feb. 22, 2021 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.
A final reference rate spread that is greater than zero means that longer-term interest rates (as measured by the 30-year rate) are greater than shorter-term interest rates (as measured by the two-year rate), while a final reference rate spread that is less than zero means that the opposite is true (sometimes referred to as an “inverted yield curve”).
If the final reference rate spread is greater than or equal to zero, the payout at maturity will be par plus a positive return equal to 1% for every 0.01% that the final reference rate spread is greater than zero, subject to a maximum return of 20%.
If the final reference rate spread is less than zero, investors will lose 3% for every 0.01% that the final reference rate spread is less than zero.
Morgan Stanley & Co. LLC is the agent.
The issuer noted that it may increase the issue size prior to settlement but is not required to do so.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Securities with leveraged downside principal exposure
|
| Underlying spread: | 30-year U.S. dollar ICE swap rate over two-year U.S. dollar ICE swap rate
|
| Amount: | $3 million
|
| Maturity: | Feb. 22, 2021
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final reference rate spread is greater than or equal to zero, $1,000 plus product of $1,000 multiplied by 100 times final reference rate spread, subject to maximum payout of $1,200 per $1,000 principal amount of notes; if final reference rate spread is less than zero, $1,000 plus product of $1,000 multiplied by 300 times final reference rate spread
|
| Pricing date: | Feb. 14
|
| Settlement date: | Feb. 20
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.55%
|
| Cusip: | 61766YDR9
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
