Published on 4/3/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $9.5 million callable contingent income notes on indexes
By Sarah Lizee
Olympia, Wash., April 3 – Morgan Stanley Finance LLC priced $9.5 million of callable contingent income securities due Oct. 4, 2021 linked to the least performing of the S&P 500 index, the Nikkei 225 index and the Euro Stoxx 50 index, 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 the rate of 9.05% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If each index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par.
If any index finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing index from its initial level.
Beginning Oct. 3, the notes will be callable quarterly at par.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is handling distribution.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Callable contingent income securities
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Underlying indexes: | S&P 500 index, Nikkei 225 index and Euro Stoxx 50 index
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Amount: | $9,504,000
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Maturity: | Oct. 4, 2021
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Coupon: | 9.05% per year, payable quarterly if each index closes at or above coupon barrier level on observation date that period
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Price: | Par
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Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below downside threshold, full exposure to decline of least-performing index from its initial level
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Call option: | Starting Oct. 3, notes are callable at par quarterly
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Initial levels: | 2,834.40 for S&P, 21,205.81 for Nikkei, 3,351.71 for Stoxx
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Coupon barriers: | 1,984.08 for S&P, 14,844.067 for Nikkei, 2,346.197 for Stoxx; 70% of initial levels
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Downside thresholds: | 1,984.08 for S&P, 14,844.067 for Nikkei, 2,346.197 for Stoxx; 70% of initial levels
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Pricing date: | March 29
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Settlement date: | April 3
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Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management handling distribution
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Fees: | 2.25%
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Cusip: | 61768D4A0
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