Published on 3/4/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.52 million securities due 2020 on ETF basket
By Toni Weeks
San Luis Obispo, Calif., March 4 – Morgan Stanley priced $1.52 million of securities with leveraged upside participation to a cap and fixed-percentage buffered downside due March 4, 2020 linked to a basket of unequally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket components are the SPDR S&P 500 ETF Trust with a 50% weight, the iShares Russell 2000 ETF with a 20% weight, the iShares MSCI EAFE ETF with a 15% weight and the iShares MSCI Emerging Markets ETF with a 15% weight.
If the basket return is positive, the payout at maturity will be par plus 140% of the basket return, subject to a maximum payout of $1,570 per $1,000 principal amount of notes.
Investors will receive par if the basket falls by up to 15% and will lose 1% for every 1% decline beyond the 15% buffer.
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents, and Wells Fargo Advisors, LLC is the dealer.
Issuer: | Morgan Stanley
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Issue: | Securities
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Underlying basket: | SPDR S&P 500 ETF Trust (50% weight), iShares Russell 2000 ETF (20% weight), iShares MSCI EAFE ETF (15% weight) and iShares MSCI Emerging Markets ETF (15% weight)
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Amount: | $1,517,000
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Maturity: | March 4, 2020
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If basket gains, par plus 1.4 times basket return, subject to maximum return of 57%; par if basket falls by up to 15%; exposure to losses beyond the 15% buffer
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Initial ETF levels: | $210.66 for SPDR S&P 500, $122.55 for iShares Russell, $65.07 for iShares EAFE, $40.69 for iShares EM
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Initial basket level: | 100
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Pricing date: | Feb. 27
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Settlement date: | March 4
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Agents: | Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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Dealer: | Wells Fargo Advisors, LLC
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Fees: | 3.16%
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Cusip: | 61761JWU9
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