Published on 5/14/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.2 million 7.5% autocallable RevCons linked to three stocks
By Toni Weeks
San Luis Obispo, Calif., May 14 - Morgan Stanley priced $2.2 million of 7.5% autocallable reverse convertible notes due Aug. 19, 2015 linked to the worst performing of three common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The stocks are Apple Inc., Coca-Cola Co. and Facebook, Inc.
Interest is payable quarterly.
The notes will be automatically called at par if the closing price of each stock is greater than or equal to its redemption threshold level, 98% of the initial share price, on any quarterly determination date other than the final date.
The payout at maturity will be par unless any stock finishes below its downside threshold level, 65% of the initial share price, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by that stock's initial share price or, at the issuer's option, the cash value of those shares.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Autocallable reverse convertible notes
|
| Underlying stocks: | Apple Inc. (Symbol: AAPL), Coca-Cola Co. (Symbol: KO) and Facebook, Inc. (Symbol: FB)
|
| Amount: | $2.2 million
|
| Maturity: | Aug. 19, 2015
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| Coupon: | 7.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below barrier price, in which case number of shares of worst-performing stock equal to its exchange ratio ($1,000 divided by that stock's initial share price) or, at issuer's option, cash value of those shares
|
| Call: | Automatically at par if each stock closes at or above its redemption threshold level on a quarterly determination date other than final date
|
| Initial share prices: | $592.83 for Apple, $40.82 for Coca-Cola and $59.85 for Facebook
|
| Downside thresholds: | $385.34 for Apple, $26.533 for Coca-Cola and $38.903 for Facebook, 65% of initial prices
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| Redemption thresholds: | $580.973 for Apple, $40.004 for Coca-Cola and $58.653 for Facebook, 98% of initial prices
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| Exchange ratios: | 1.68682 for Apple, 24.4978 for Coca-Cola and 16.70844 for Facebook
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| Pricing date: | May 12
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| Settlement date: | May 19
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| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as dealer
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| Fees: | 2%
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| Cusip: | 61761JQY8
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