Published on 3/28/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.89 million contingent income notes linked to two indexes
By Toni Weeks
San Luis Obispo, Calif., March 28 - Morgan Stanley priced $1.89 million of contingent income securities due March 29, 2029 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a fixed monthly coupon of 7.5% for the first four years. After that, the notes will pay a contingent monthly coupon at an annual rate of 7.5% if each index closes at or above its 75% coupon barrier level on a determination date for that month.
The payout at maturity will be par plus the final contingent coupon, unless either index finishes below its 75% trigger level, in which case investors will be fully exposed to the decline of the worst-performing index.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $1,894,000
|
| Maturity: | March 29, 2029
|
| Coupon: | 7.5% annualized, payable monthly for first four years; beginning April 30, 2018, 7.5% if each index closes at or above its barrier level on review date for that month
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above its 75% downside threshold level, par plus the final contingent coupon; otherwise, full exposure to losses of worst-performing index
|
| Initial index levels: | 1,155.486 for Russell, 3,130.17 for Euro Stoxx
|
| Coupon barrier levels: | 866.615 for Russell, 2,347.628 for Euro Stoxx; 75% of initial levels
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JPN3
|
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