By Wendy Van Sickle
Columbus, Ohio, Jan. 12 – Morgan Stanley Finance LLC priced $35.28 million of trigger callable contingent yield notes with quarterly coupon observation due Jan. 9, 2026 linked to the worst performing of the SPDR S&P 500 ETF Trust, the iShares Russell 2000 ETF and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8.12% if each ETF closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
The notes will be callable at par of $10 plus any coupon on any quarterly observation date after one year other than the final one.
If the notes are not called and each ETF finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus any final coupon. Otherwise, investors will lose 1% for every 1% decline of the least-performing ETF.
UBS Financial Services Inc. and Morgan Stanley & Co. LLC are the agents.
Issuer: | Morgan Stanley Finance LLC
|
Guarantor: | Morgan Stanley
|
Issue: | Trigger callable contingent yield notes with quarterly coupon observation
|
Underlying ETFs: | SPDR S&P 500 ETF Trust, the iShares Russell 2000 ETF and the iShares MSCI EAFE ETF
|
Amount: | $35,275,000
|
Maturity: | Jan. 9, 2026
|
Coupon: | 8.12% per year, payable quarterly if each ETF closes at or above its barrier level on the observation date for that quarter
|
Price: | Par of $10
|
Payout at maturity: | Par plus any coupon unless any ETF finishes below downside threshold level, in which case 1% loss for every 1% decline of worst performing ETF
|
Call option: | At par plus any coupon on any quarterly observation date after one year other than final one
|
Initial levels: | $373.55 for S&P ETF, $204.53 for Russell ETF, $74.95 for EAFE ETF
|
Coupon barrier levels: | $261.49 for S&P ETF, $143.17 for Russell ETF, $52.47 for EAFE ETF; 70% of initial levels
|
Downside thresholds: | $224.13 for S&P ETF, $122.72 for Russell ETF, $44.97 for EAFE ETF; 60% of initial levels
|
Pricing date: | Jan. 6
|
Settlement date: | Jan. 11
|
Agents: | UBS Financial Services Inc. and Morgan Stanley & Co. LLC
|
Fees: | 1.5%
|
Cusip: | 61771J420
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.