By Wendy Van Sickle
Columbus, Ohio, Aug. 10 – Morgan Stanley Finance LLC priced $1 million of fixed-to-floating rate securities due Aug. 31, 2036 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Interest is payable monthly and will be at a rate of 8% for the first year. After that, it will accrue at 8 times the 30-year ICE swap rate minus the two-year ICE swap rate for each day both indexes close above 60% of their initial levels.
The payout at maturity will be par unless either index finishes below its 50% barrier level, in which case investors will be fully exposed to the loss of the worse performing index.
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-to-floating securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $1 million
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| Maturity: | Aug. 31, 2036
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| Coupon: | 8% for first year, then 8 times 30-year ICE swap rate minus two-year ICE swap rate for each day both indexes close above 60% of initial levels; payable monthly
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| Initial index levels: | Closing levels on Aug. 26
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| Price: | Varying
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| Payout at maturity: | Par, unless either index closes below 50% barrier, in which case full exposure to loss of lesser performing index
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| Pricing date: | Aug. 5
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| Settlement date: | Aug. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fee: | 3.5%
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| Cusip: | 61766YAK7
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