By Marisa Wong
Madison, Wis., Sept. 16 - Morgan Stanley priced $8.48 million of 0% autocallable securities due Sept. 17, 2013 linked to the common stock of Apple Inc., according to an FWP filing with the Securities and Exchange Commission.
If Apple stock closes at or above the initial share price on any of six semiannual determination dates, the notes will be automatically called at par of $10 plus the contingent payment amount multiplied by the contingent payment multiplier.
The contingent payment amount is $0.40. The contingent payment multiplier is the number of determination dates up to that point on which the closing stock price is at least 65% of the initial share price.
If the notes are not called, the payout at maturity will be par unless the final share price is less than 65% of the initial share price, in which case investors will receive a number of Apple shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
In both cases, investors will also receive at maturity the contingent payment amount multiplied by the contingent payment multiplier.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Autocallable securities
|
| Underlying stock: | Apple Inc.
|
| Amount: | $8,484,320
|
| Maturity: | Sept. 17, 2013
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par unless final share price is below threshold price, in which case 0.03731 Apple shares or, at issuer's option, equivalent value in cash
|
| Call: | At par of $10 plus $0.40 times number of determination dates up to that point on which closing price is at or above threshold
|
| Initial price: | $268.06
|
| Threshold price: | $174.239, 65% of initial price
|
| Pricing date: | Sept. 14
|
| Settlement date: | Sept. 17
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2.1%
|
| Cusip: | 61759G349
|
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