By Jennifer Chiou
New York, Sept. 4 - Morgan Stanley priced $6,594,310 of contingent income autocallable securities due Sept. 6, 2016 linked to Celgene Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Celgene stock closes at or above the 80% downside threshold level on a quarterly determination date, the notes will pay a contingent payment at an annual rate of 10.05% for that quarter.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the downside threshold level, in which case the payout will be a number of Celgene shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Celgene Corp. (NYSE: CELG)
|
| Amount: | $6,594,310
|
| Maturity: | Sept. 6, 2016
|
| Contingent coupon: | 10.05% annualized for each quarter that Celgene stock closes at or above trigger level for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If stock finishes at or above trigger level, par plus contingent payment; otherwise, 0.07144 Celgene shares or, at issuer's option, cash equivalent
|
| Call: | At par plus contingent payment if closing share price is greater than or equal to initial share price on any of first 11 quarterly determination dates
|
| Initial share price: | $139.98
|
| Trigger level: | $104.975, 80% of initial share price
|
| Exchange ratio: | 0.07144
|
| Pricing date: | Aug. 30
|
| Settlement date: | Sept. 5
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61762P690
|
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