Published on 3/12/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $1 million callable contingent income notes on S&P, Russell
By Sarah Lizee
Olympia, Wash., March 12 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due March 15, 2024 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a contingent quarterly coupon at the rate of 6.35% per year if each index closes at or above the coupon barrier level, 55% of the initial index level, on the observation date for that period.
If each index finishes at or above the downside threshold level, 55% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the lesser-performing index’s decline from its initial level.
Beginning Sept. 16, the notes will be callable at par on any interest payment date.
Morgan Stanley & Co. LLC is the agent.
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 index: | S&P 500, Russell 2000
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Amount | $1 million
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Maturity: | March 15, 2024
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Coupon: | 6.35% per year, payable quarterly if each index closes at or above coupon barrier level on observation date for that period
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Price: | Par
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Payout at maturity: | If index finishes at or above downside threshold level, par; if index finishes below downside threshold level, full exposure to index’s decline from initial level
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Call option: | Beginning Sept. 16, callable at par on any interest payment date
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Initial levels: | 2,743.07 for S&P, 1,521.884 for Russell
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Coupon barrier/threshold: | 1,508.689 for S&P, 837.036 for Russell, 55% of initial level
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Pricing date: | March 8
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Settlement date: | March 15
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0%
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Cusip: | 61768D2Q7
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