Published on 5/29/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $500,000 callable contingent income notes linked to Euro Stoxx, Russell
By Angela McDaniels
Tacoma, Wash., May 29 – Morgan Stanley priced $500,000 of callable contingent income securities due May 29, 2020 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.
Each month, the notes will pay a contingent coupon at the rate of 6.25% per year if each index closes at or above its barrier level, 60% of its initial level, on the observation date for that month.
If each index finishes at or above its barrier level, the payout at maturity will be par plus the final coupon. If either index finishes below its barrier level, investors will be fully exposed to the decline of the worst-performing index.
Beginning May 29, 2016, the notes will be callable at par on any quarterly redemption date.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Callable contingent income securities
|
| Underlying indexes: | Russell 2000 and Euro Stoxx 50
|
| Amount: | $500,000
|
| Maturity: | May 29, 2020
|
| Coupon: | 6.25% per year, payable monthly only if each index closes at or above barrier level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if each index finishes at or above barrier level; if either index finishes below barrier level, full exposure to decline of worst-performing index
|
| Call option: | At par on any quarterly redemption date from May 29, 2016 onward
|
| Initial levels: | 1,238.756 for Russell 2000 and 3,619.30 for Euro Stoxx 50
|
| Barrier levels: | 743.254 for Russell 2000 and 2,171.58 for Euro Stoxx 50; 60% of initial levels
|
| Pricing date: | May 26
|
| Settlement date: | May 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61761JYT0
|
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