By Jennifer Chiou
New York, July 3 - Morgan Stanley priced $5,684,000 of contingent income autocallable securities due July 3, 2014 linked to Ford Motor Co. shares, according to an FWP with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 9.75% per year if Ford stock closes at or above the 75% downside threshold level on the determination date for that quarter.
If the shares close at or above the initial level on any of the first three quarterly determination dates, the notes will be called at par plus the contingent coupon.
If the notes are not called and Ford stock finishes at or above the 75% downside threshold level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of Ford stock equal to $10 divided by the 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 Smith Barney LLC as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Ford Motor Co. (NYSE: F)
|
| Amount: | $5,684,000
|
| Maturity: | July 3, 2014
|
| Contingent coupon: | 9.75% per year, payable quarterly if Ford stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, 0.64641 Ford shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | At par plus contingent payment if closing share price is greater than or equal to the initial share price on any of the first three call dates
|
| Initial share price: | $15.47
|
| Downside threshold level: | $11.603, 75% of initial share price
|
| Pricing date: | June 28
|
| Settlement date: | July 3
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 1.5%
|
| Cusip: | 61762E851
|
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