By Susanna Moon
Chicago, Dec. 31 - Morgan Stanley priced $14.01 million of contingent income autocallable securities due Jan. 3, 2017 linked to the Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.85% if stock closes at or above its 75% barrier level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any of the first 11 determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 75% barrier level, in which case investors will receive a number of Apple shares equal to par of $10.00 divided by the initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Apple Inc. (Symbol: AAPL)
|
| Amount: | $14,014,870
|
| Maturity: | Jan. 3, 2017
|
| Coupon: | 9.85% annualized for each quarter that shares close at or above barrier level on quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below barrier level, in which case 0.01785 Apple shares
|
| Call: | At par plus the contingent coupon if stock closes at or above the initial level on any of first 11 review dates
|
| Initial level: | $560.09
|
| Barrier level: | $420.068, 75% of initial level
|
| Pricing date: | Dec. 27
|
| Settlement date: | Jan. 2
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61762W802
|
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