By Sarah Lizee
Olympia, Wash., March 12 – Morgan Stanley Finance LLC priced $1 million of callable contingent income securities due March 11, 2022 linked to the least performing of the S&P 500 index, the Russell 2000 index and the iShares MSCI Emerging Markets 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 the rate of 7.65% per year if each asset closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
If each asset finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par.
If any asset finishes below its downside threshold, investors will be fully exposed to the decline of the least-performing asset from its initial level.
Beginning Sept. 13, the notes will be callable quarterly at par.
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 assets: | S&P 500 index, Russell 2000 index and iShares MSCI Emerging Markets ETF
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Amount: | $1 million
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Maturity: | March 11, 2022
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Coupon: | 7.65% per year, payable quarterly if each asset 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 asset finishes at or above downside threshold; if any asset finishes below downside threshold, full exposure to decline of least-performing asset from its initial level
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Call option: | Starting Sept. 13, notes are callable at par quarterly
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Initial levels: | 2,743.07 for S&P, 1,521.884 for Russell and $41.64 for ETF
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Coupon barriers: | 1,920.149 for S&P, 1,065.319 for Russell and $29.148 for ETF; 70% of initial levels
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Downside thresholds: | 1,371.535 for S&P, 760.942 for Russell and $20.82 for ETF; 60% of initial levels
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Pricing date: | March 8
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Settlement date: | March 13
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 0.25%
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Cusip: | 61768D2X2
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