By Angela McDaniels
Tacoma, Wash., Feb. 22 - Morgan Stanley priced $33.5 million of contingent income securities due Feb. 27, 2023 linked to the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.
Investors will receive a contingent monthly payment of $5.8333 per $1,000 principal amount of notes if the index closes at or above the downside threshold level, 50% of the initial level, on the determination date for that month. Otherwise, no payment will be made that month. The payment is 7% on an annualized basis.
If the final index level is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent monthly payment. If the final index level is less than the downside threshold level, investors will be fully exposed to the decline of the index from the initial level.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley
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Issue: | Contingent income securities
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Underlying index: | Russell 2000
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Amount: | $33.5 million
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Maturity: | Feb. 27, 2023
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Coupon: | Payment will be made monthly at rate of 7% per year if index closes at or above downside threshold level on determination date for that month; otherwise, no payment will be made that month
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Price: | Par
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Payout at maturity: | If final index level is greater than or equal to downside threshold level, par plus contingent monthly payment; otherwise, full exposure to decline of index from initial level
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Initial index level: | 913.50
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Downside threshold level: | 456.75, 50% of initial level
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Pricing date: | Feb. 20
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Settlement date: | Feb. 25
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.9%
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Cusip: | 61761JCP2
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