By Jennifer Chiou
New York, April 27 - Morgan Stanley priced $4.92 million of contingent income autocallable securities due April 28, 2014 linked to the common stock of Fifth Third Bancorp, according to an FWP with the Securities and Exchange Commission.
If Fifth Third stock closes above the downside threshold level - 70% of the initial share price - on a semiannual determination date, investors will receive a contingent payment of 4.75% for each $10.00 note. Otherwise, no contingent payment will be made for that quarter.
If the closing share price is greater than the initial share price on any semiannual determination date, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than or equal to the downside threshold level, the payout will be par plus the stock return.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Fifth Third Bancorp (Nasdaq: FITB)
|
| Amount: | $4,920,900
|
| Maturity: | April 28, 2014
|
| Coupon: | If Fifth Third stock closes above downside threshold level on a semiannual determination date, 4.75% per note; otherwise, none for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than downside threshold level, par plus 4.75%; otherwise, par plus stock return
|
| Call: | Automatically at par plus 4.75% if stock closes above initial share price on any semiannual determination date
|
| Initial share price: | $12.92
|
| Downside threshold price: | $9.044, 70% of initial price
|
| Pricing date: | April 25
|
| Settlement date: | April 28
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2.75%
|
| Cusip: | 61760E614
|
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