By Marisa Wong
Los Angeles, March 25 – Morgan Stanley Finance LLC priced $33.83 million of contingent income autocallable securities due March 28, 2023 tied to the Financial Select Sector SPDR fund, the Communication Services Select Sector SPDR fund and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at an annualized rate of 13.06% if each ETF closes at or above its downside threshold level, 70% of the initial price, on the related quarterly observation date.
The notes will be automatically called at par if each ETF closes at or above its initial price on any quarterly call determination date.
If each ETF finishes at or above its downside threshold level, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the worst-performing ETF from its initial price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying ETFs: | Financial Select Sector SPDR fund, Communication Services Select Sector SPDR fund and SPDR S&P Regional Banking ETF
|
| Amount: | $33,826,000
|
| Maturity: | March 28, 2023
|
| Coupon: | 13.06% per year, payable each quarter that each ETF closes at or above downside threshold on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above downside threshold, par; otherwise, full exposure to decline of worst-performing ETF from its initial price
|
| Call option: | At par if each ETF closes at or above its initial price on any quarterly call determination date
|
| Initial price: | $33.16 for Financial ETF, $75.35 for Communication ETF, $64.77 for Banking ETF
|
| Downside threshold: | $23.212 for Financial ETF, $52.745 for Communication ETF, $45.339 for Banking ETF; 70% of initial price
|
| Pricing date: | March 23
|
| Settlement date: | March 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.75%
|
| Cusip: | 61771VLP3
|
© 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.
