By Toni Weeks
San Luis Obispo, Calif., Dec. 4 - Morgan Stanley priced $28.66 million of contingent income autocallable securities due Dec. 5, 2016 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
If Ford stock closes at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of $0.24375 per $10 note for that quarter, equivalent to 9.75% per year.
If the closing share price is greater than or equal to the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par of $10 plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, the payout will be a number of Ford shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Ford Motor Co. (Symbol: F)
|
| Amount: | $28,657,430
|
| Maturity: | Dec. 5, 2016
|
| Coupon: | 9.75% per year, payable quarterly if Ford stock closes at or above 75% downside threshold level on quarterly review date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent payment unless stock closes below downside threshold level, in which case 0.58548 Ford shares or, at issuer's option, cash equivalent
|
| Call: | At par plus contingent coupon if shares close at or above initial share price on any of first 11 quarterly determination dates
|
| Initial share price: | $17.08
|
| Downside threshold: | $12.81, 75% of initial price
|
| Pricing date: | Nov. 29
|
| Settlement date: | Dec. 4
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as dealer
|
| Fees: | 2.25%
|
| Cusip: | 61762W612
|
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