Published on 12/17/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.69 million trigger phoenix autocallables on S&P, MSCI EAFE
By Marisa Wong
Morgantown, W.Va., Dec. 17 – Morgan Stanley priced $3.69 million of trigger phoenix autocallable optimization securities due Dec. 21, 2018 linked to the lesser performing of the S&P 500 index and the MSCI EAFE index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.75% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
After six months, the notes will be called at par if each index closes at or above its initial level on any quarterly observation date.
If the notes are not called and each index finishes at or above its trigger level, 70% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. Otherwise, investors will be exposed to the decline of the lesser-performing index.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.
| Issuer: | Morgan Stanley
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying indexes: | S&P 500 and MSCI EAFE
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| Amount: | $3,685,000
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| Maturity: | Dec. 21, 2018
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| Coupon: | 7.75% per year, payable quarterly if each index closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon, if any, if each index finishes at or above trigger level; otherwise, full exposure to decline of lesser-performing index
|
| Call: | Automatically at par if each index closes at or above initial level on any quarterly observation date from June 15, 2016 onward
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| Initial index levels: | 2,043.41 for S&P 500, 1,674.35 for MSCI EAFE
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| Barrier/trigger levels: | 1,430.39 for S&P 500, 1,172.05 for MSCI EAFE; 70% of initial levels
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| Pricing date: | Dec. 15
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| Settlement date: | Dec. 18
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| Agent: | Morgan Stanley & Co. LLC with UBS Financial Services Inc. as dealer
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| Fees: | 2%
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| Cusip: | 61765U498
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