By Toni Weeks
San Luis Obispo, Calif., Aug. 29 – Morgan Stanley priced $1 million of 5.5% airbag autocallable yield optimization notes due Aug. 31, 2015 linked to the class A common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The notes will be called automatically at par if Facebook shares close at or above the initial share price on any quarterly observation date.
The payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Facebook shares equal to $1,000 divided by the conversion price. The conversion price is 80% of the initial share price.
Morgan Stanley & Co. LLC is the agent, with UBS Financial Services Inc. as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Airbag autocallable yield optimization notes
|
| Underlying stock: | Facebook, Inc. (Symbol: FB)
|
| Amount: | $1 million
|
| Maturity: | Aug. 31, 2015
|
| Coupon: | 5.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless final share price is less than conversion price, in which case 16.7504 Facebook shares
|
| Call: | Automatically at par plus accrued interest if Facebook stock closes at or above initial share price on any quarterly observation date
|
| Initial share price: | $74.63
|
| Conversion price: | $59.70, 80% of initial share price
|
| Pricing date: | Aug. 27
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| Settlement date: | Aug. 29
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| Agent: | Morgan Stanley & Co. LLC, with UBS Financial Services Inc. as dealer
|
| Fees: | 1.5%
|
| Cusip: | 61758S526
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