Published on 8/25/2009 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $2.6 million 10% RevCons linked to AT&T
By Susanna Moon
Chicago, Aug. 25 - Morgan Stanley priced $2.6 million of 10% annualized reverse convertible securities due Feb. 26, 2010 linked to the common stock of AT&T Inc., according to an FWP filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The payout at maturity will be par unless AT&T stock falls below the trigger price - 86% of the initial share price - during the life of the notes and the final share price is less than the initial price, in which case the payout will be a number of AT&T shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the value of those shares in cash.
Morgan Stanley & Co. Inc. is the agent.
Issuer: | Morgan Stanley
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Issue: | Reverse convertible securities
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Underlying stock: | AT&T Inc. (NYSE: T)
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Amount: | $2,597,000
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Maturity: | Feb. 26, 2010
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Coupon: | 10%, payable monthly
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Price: | Par
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Payout at maturity: | If the stock falls below trigger price during life of notes and final share price is less than initial share price, 38.25555 AT&T shares or equivalent in cash; otherwise, par
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Initial share price: | $26.14
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Trigger price: | $22.4804, or 86% of initial share price
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Pricing date: | Aug. 24
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Settlement date: | Aug. 27
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Agent: | Morgan Stanley & Co. Inc.
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Fees: | 1.5%
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