By Toni Weeks
San Luis Obispo, Calif., Sept. 17 - Morgan Stanley priced $5.39 million of contingent income autocallable securities due Sept. 19, 2016 linked to the common stock of JPMorgan Chase & Co., according to an FWP filing with the Securities and Exchange Commission.
If JPMorgan stock closes at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of 2.0625% for that quarter. The amount is equivalent to 8.25% per year.
If the closing share price is greater than or equal to the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par of $10 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. Otherwise, the payout will be a number of JPMorgan shares equal to $10 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. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | JPMorgan Chase & Co. (Symbol: JPM)
|
| Amount: | $5,391,000
|
| Maturity: | Sept. 19, 2016
|
| Contingent coupon: | 8.25% annualized for each quarter that JPMorgan 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, 0.19015 JPMorgan 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: | $52.59
|
| Trigger level: | $42.072, 80% of initial share price
|
| Pricing date: | Sept. 13
|
| Settlement date: | Sept. 18
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as dealer
|
| Fees: | 2.25%
|
| Cusip: | 61762P831
|
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