By Marisa Wong
Madison, Wis., Nov. 21 - Morgan Stanley priced $14.67 million of contingent income autocallable securities due Nov. 27, 2015 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Apple stock closes above the downside threshold level - 75% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.30625 for each $10.00 note. Otherwise, no contingent payment will be made for that period.
If the stock closes at or above the initial price on any of the first 11 quarterly determination dates, the notes will be redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Apple shares equal to the principal amount of notes divided by the initial share price or, at Morgan Stanley's option, the cash value of those shares.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $14,669,230
|
| Maturity: | Nov. 27, 2015
|
| Coupon: | 3.0625% if closing price is at least 75% of initial price on quarterly determination date; otherwise, none
|
| Price: | Par
|
| Payout at maturity: | If final share price is at least 70% of initial, par plus contingent quarterly payment; otherwise, 0.01782 Apple shares, or, at Morgan Stanley's option, cash equivalent
|
| Call option: | Par plus contingent payment if closing share price is greater than initial price on first 11 quarterly determination dates
|
| Initial price: | $561.15
|
| Downside threshold: | $420.8625, 75% of initial share price
|
| Pricing date: | Nov. 20
|
| Settlement date: | Nov. 26
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61761H780
|
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