By Toni Weeks
San Luis Obispo, Calif., Nov. 27 - Morgan Stanley priced $13.24 million of contingent income autocallable securities due Nov. 28, 2016 linked to Cisco Systems, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Cisco stock closes at or above the 80% downside threshold level on a quarterly review date, the notes will pay a contingent quarterly coupon at an annual rate of 8.4% for that quarter.
If the shares close 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 coupon.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock closes below the 80% downside threshold level, in which case the payout will be a number of Cisco 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 with Morgan Stanley Wealth Management as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Cisco Systems, Inc. (Symbol: CSCO)
|
| Amount: | $13,242,450
|
| Maturity: | Nov. 28, 2016
|
| Coupon: | 8.4% per year, payable quarterly if Cisco stock closes at or above 80% downside threshold level on quarterly review date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent payment unless stock closes below downside threshold level, in which case 0.46598 Cisco shares or, at issuer's option, cash equivalent
|
| Call: | At par plus contingent coupon if shares close at or above initial share price on any of first 11 quarterly determination dates
|
| Initial share price: | $21.46
|
| Downside threshold: | $17.168, 80% of initial price
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 27
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as dealer
|
| Fees: | 2.25%
|
| Cusip: | 61762W588
|
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