By Angela McDaniels
Tacoma, Wash., March 28 - Morgan Stanley priced $1.35 million of contingent income autocallable securities due March 31, 2016 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a coupon at the annual rate of 13% if Facebook stock closes at or above the coupon barrier level, 70% of the initial share price, on the determination date for that month.
Beginning in June, the notes will be redeemed at par plus the contingent coupon if Facebook stock closes at or above its initial price on any quarterly determination date.
If the Facebook stock finishes at or above the downside threshold level, 60% of the initial share price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the stock's decline.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying index: | Facebook, Inc. (Symbol: FB)
|
| Amount: | $1.35 million
|
| Maturity: | March 31, 2016
|
| Contingent payment: | 13% per year, payable monthly if Facebook stock closes at or above coupon barrier level on determination date for that month
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if Facebook stock finishes at or above downside threshold; otherwise full exposure to losses
|
| Call: | At par plus contingent payment if Facebook stock closes at or above initial share price on any quarterly determination date, the first of which occurs in June
|
| Initial share price: | $60.38
|
| Coupon barrier: | $42.266, 70% of initial share price
|
| Downside threshold: | $36.228, 60% of initial share price
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agents: | Morgan Stanley & Co. LLC
|
| Fees: | 2%
|
| Cusip: | 61761JPT0
|
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