Published on 7/27/2011 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $199,000 contingent coupon commodity-linked notes
By Toni Weeks
San Diego, July 27 - Morgan Stanley priced $199,000 of contingent coupon commodity-linked notes due Jan. 29, 2015 linked to a basket of eight commodities and two commodity indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket components include copper, corn, cotton, gasoline RBOB, nickel, palladium, silver, sugar, the S&P GSCI Brent Crude Index - Excess Return and the S&P GSCI Livestock Index - Excess Return.
The notes will pay a coupon each year equal to the sum of the weighted component returns of the basket commodities, subject to a floor of zero. If a commodity's return is positive, its component return will be set to a fixed return of 5.5%. If a commodity's return is negative, its component return will be the greater of the commodity return and negative 20%.
The payment at maturity will be par plus the final coupon, if any.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent coupon commodity-linked notes
|
| Underlying components: | Copper, corn, cotton, gasoline RBOB, nickel, palladium, silver, sugar, the S&P GSCI Brent Crude Index - Excess Return and the S&P GSCI Livestock Index - Excess Return
|
| Amount: | Jan. 29, 2015
|
| Coupon: | Sum of weighted component returns of basket commodities, floor of zero; if a commodity's return is positive, its component return will be 5.5%; if it is negative, component return will be greater of the commodity return and negative 20%
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon, if any
|
| Initial prices: | $9,620 for copper, 678.75 cents for corn, 97.09 cents for cotton, 312.64 cents for gasoline, $23,780 for nickel, $802.50 for palladium, 4,078 cents for silver, 30.74 cents for sugar, 830.8696 for Brent crude index, 215.9958 for livestock index
|
| Pricing date: | July 25
|
| Settlement date: | July 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 617482VJ0
|
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