By Angela McDaniels
Tacoma, Wash., June 28 - Morgan Stanley priced $37 million of Equity LinKed Securities due Dec. 23, 2011 linked to the common stock of Cummins Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes carry a coupon of 12% per year, payable monthly.
The payout at maturity will be par of $10 unless Cummins shares fall below the protection price - 80% of the initial price - during the life of the notes, in which case the payout will be a number of shares of Cummins stock equal to par divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Equity LinKed Securities
|
| Underlying stock: | Cummins Inc. (NYSE: CMI)
|
| Amount: | $37 million
|
| Maturity: | Dec. 23, 2011
|
| Coupon: | 12%, payable monthly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par in cash unless Cummins shares fall below protection price during life of notes, in which case 0.10344 Cummins shares or cash value thereof
|
| Initial share price: | $96.67
|
| Protection price: | $77.336, 80% of initial share price
|
| Pricing date: | June 24
|
| Settlement date: | June 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61760E325
|
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