By Jennifer Chiou
New York, March 2 - Morgan Stanley priced $1.9 million of 10.4% annualized autocallable reverse convertible securities due Sept. 6, 2011 linked to Apple Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
The notes will be called at par if the stock closes above its initial share price on May 31, 2011.
The payout at maturity will be par unless Apple stock falls by 25% or more during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Apple shares equal to par divided by the initial share price or, at the issuer's option, the value of those shares in cash.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Autocallable reverse convertible securities
|
| Underlying stock: | Apple Inc. (Symbol: AAPL)
|
| Amount: | $1.9 million
|
| Maturity: | Sept. 6, 2011
|
| Coupon: | 10.4%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless Apple stock falls by 25% or more during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Apple shares equal to par divided by the initial share price or, at the issuer's option, the value of those shares in cash
|
| Call: | At par if stock closes above its initial share price on May 31
|
| Initial share price: | $353.21
|
| Trigger price: | $264.9075, 75% of initial price
|
| Pricing date: | Feb. 28
|
| Settlement date: | March 3
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 1.25%
|
| Cusip: | 617482RV8
|
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