Published on 8/29/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $532,000 trigger PLUS linked to basket of six commodities
By Toni Weeks
San Luis Obispo, Calif., Aug. 29 – Morgan Stanley priced $532,000 of 0% trigger Performance Leveraged Upside Securities due March 2, 2017 linked to a basket of commodities, according to a 424B2 filing with the Securities and Exchange Commission.
The basket commodities are RBOB gasoline with a 27.5% weight, West Texas Intermediate light sweet crude oil with a 27.5% weight, soybeans with a 16.9% weight, copper with a 12.5% weight, platinum with a 10% weight and cotton with a 5.6% weight.
The payout at maturity will be par plus 130% of any basket gain.
Investors will receive par if the basket falls by up to 10% and will be fully exposed to any losses if the basket finishes below the 90% trigger level.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger Performance Leveraged Upside Securities
|
| Underlying commodities: | RBOB gasoline (27.5% weight), West Texas Intermediate light sweet crude oil (27.5% weight), soybeans (16.9% weight), copper (12.5% weight), platinum (10% weight) and cotton (5.6% weight)
|
| Amount: | $532,000
|
| Maturity date: | March 2, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is positive, par plus 130% of basket return; par if basket declines by up to 10%; full exposure to basket decline from initial level if it finishes at or below trigger level
|
| Initial prices: | $2.7459 for gasoline, $93.88 for crude oil, 1,085.75 cents for soybeans, $7,051 for copper, $1,420 for platinum and $3,216 for cocoa
|
| Initial basket level: | 100
|
| Trigger level: | 90% of initial level
|
| Pricing date: | Aug. 27
|
| Settlement date: | Sept. 2
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.25%
|
| Cusip: | 61762GBZ6
|
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