Published on 3/18/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.46 million contingent income autocallables linked to CBS
By Angela McDaniels
Tacoma, Wash., March 18 – Morgan Stanley priced $3.46 million of contingent income autocallable securities with step-up redemption threshold level feature due March 16, 2018 linked to the class B common stock of CBS Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If CBS shares close 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 that quarter at an annualized rate of 8%.
The notes will be called at par of $10 plus the contingent coupon if CBS shares close at or above the redemption threshold level price on any quarterly determination date other than the final determination date. The redemption threshold level is 105% of the initial share price for determination dates one through four, 110% of the initial share price for determination dates five through eight and 115% of the initial share price for determination dates nine through 11.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of CBS 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.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities with step-up redemption threshold level feature
|
| Underlying stock: | CBS Corp. class B common stock (Symbol: CBS)
|
| Amount: | $3,460,370
|
| Maturity: | March 16, 2018
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| Coupon: | 8% per year, payable quarterly if CBS shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 0.16412 CBS share or, at issuer’s option, equivalent amount in cash
|
| Call: | At par plus contingent coupon if CBS shares close at or above redemption threshold level on any quarterly determination date other than final determination date
|
| Initial share price: | $60.93
|
| Downside threshold: | 48.744, 80% of initial share price
|
| Redemption threshold: | $63.977, 105% of initial share price, for determination dates one through four; $67.023, 110% of initial share price, for determination dates five through eight; and $70.070, 115% of initial share price, for determination dates nine through 11
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| Pricing date: | March 13
|
| Settlement date: | March 18
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61764V448
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