By Wendy Van Sickle
Columbus, Ohio, April 15 – Morgan Stanley Finance LLC priced $1 million of fixed-to-floating rate securities due April 28, 2036 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly and will be at a rate of 10% for the first year. After that, it will accrue at 10 times the 30-year ICE swap rate minus the two-year ICE swap rate for each day both indexes close above 65% of their initial levels, subject to a maximum rate of 10% and a floor of zero.
The payout at maturity will be par unless either index finishes below its 50% barrier level, in which case investors will be fully exposed to the loss of the worse performing index.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Fixed-to-floating-rate notes
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Underlying indexes: | S&P 500, Russell 2000
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Amount: | $1 million
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Maturity: | April 28, 2036
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Coupon: | 10% for first year, then 10 times 30-year ICE swap rate minus two-year ICE swap rate for each day both indexes close above 65% of initial levels, subject to a maximum rate of 10% and floor of zero
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Price: | Variable
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Payout at maturity: | Par unless either index finishes below its 50% barrier level, in which case full exposure to loss of the worse performing index
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Initial levels: | To be set April 25
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Pricing date: | April 13
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Settlement date: | April 28
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Agent: | Morgan Stanley & Co. LLC
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Fee: | 3.5%
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Cusip: | 61766YAA9
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