By Wendy Van Sickle
Columbus, Ohio, March 13 – Morgan Stanley Finance LLC priced $1 million of fixed-to-floating rate securities due March 31, 2037 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 9% for the first year. After that, it will accrue at 15 times the 30-year ICE swap rate minus the two-year ICE swap rate for each day both indexes close above 50% of their initial levels, up to a maximum rate of 9% a year.
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: | March 31, 2037
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Coupon: | 9% for first year, then 15 times 30-year ICE swap rate minus two-year ICE swap rate for each day both indexes close above 50% of initial levels, capped at 9% a year; payable monthly
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Initial index levels: | Closing levels on March 28
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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: | March 2
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Settlement date: | March 31
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Agent: | Morgan Stanley & Co. LLC
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Fee: | 5%
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Cusip: | 61766YBC4
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