By Marisa Wong
Madison, Wis., Aug. 27 - Morgan Stanley priced $23.64 million of contingent income autocallable securities due Aug. 29, 2016 linked to Ford Motor Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Ford stock closes at or above the 75% downside threshold level on a quarterly determination date, the notes will pay a contingent payment at an annual rate of 9% for that quarter.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the downside threshold level, in which case the payout will be a number of Ford shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Ford Motor Co. (Symbol: F)
|
| Amount: | $23,639,830
|
| Maturity: | Aug. 29, 2016
|
| Contingent coupon: | 9% annualized for each quarter that Ford stock closes at or above trigger level for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If stock finishes at or above trigger level, par plus contingent payment; otherwise, 0.60790 Ford shares or, at issuer's option, cash equivalent
|
| Call: | At par plus contingent payment if closing share price is greater than or equal to initial share price on any of first 11 quarterly determination dates
|
| Initial share price: | $16.45
|
| Trigger level: | $12.338, 75% of initial share price
|
| Exchange ratio: | 0.60790
|
| Pricing date: | Aug. 23
|
| Settlement date: | Aug. 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61762P625
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
