Published on 10/31/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1 million principal at risk securities on S&P 500
By Jennifer Chiou
New York, Oct. 31 - Morgan Stanley priced $1 million of equity-linked principal at risk securities due Oct. 31, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at a rate of 7.5% per year if the index closes at or above the coupon barrier level - 75% of the initial level - on the determination date for that month. Otherwise, no coupon will be paid that month.
If the index finishes at or above 50% of the initial level, the payout at maturity will be par and, if the final level is also greater than or equal to the coupon barrier level, the contingent coupon. Otherwise, investors will receive par plus the index return, with full exposure to losses.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Equity-linked principal at risk securities
|
| Underlying index: | S&P 500
|
| Amount: | $1 million
|
| Maturity: | Oct. 31, 2028
|
| Coupon: | 7.5% per year, payable monthly if the index closes at or above coupon barrier level on the determination date for that month; otherwise, no coupon for that month
|
| Price: | Par
|
| Payout at maturity: | Par if index finishes at or above 50% of the initial level and, if the final level is also greater than or equal to the coupon barrier level, the contingent coupon; otherwise, par plus index return with full exposure to losses
|
| Initial index level: | 1,762.11
|
| Coupon barrier level: | 1,321.583, 75% of initial level
|
| Downside threshold level: | 881.055, 50% of initial level
|
| Pricing date: | Oct. 28
|
| Settlement date: | Oct. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JMA4
|
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