By Susanna Moon
Chicago, July 2 – Morgan Stanley priced $8.18 million of contingent income autocallable securities with step-up redemption threshold due July 3, 2017 linked to Ford Motor Co. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.65% if Ford stock closes at or above the 80% barrier level on a determination date for that quarter.
The notes will be redeemed at par plus the contingent payment if Ford stock closes at or above its redemption threshold level on any quarterly determination dates.
The redemption threshold will be 105% of the initial share price for the first four determination dates, stepping up to 110% of the initial share price for the next four determination dates and to 115% of the initial price for the three determination dates after that.
If the Ford stock finishes at or above the 80% trigger level, the payout at maturity will be par plus the contingent quarterly payment.
Otherwise, investors will receive a number of shares equal to par of $10 divided by the initial share price.
The agent is Morgan Stanley & Co. LLC.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Ford Motor Co. (Symbol: F)
|
| Amount: | $8,179,220
|
| Maturity: | July 3, 2017
|
| Contingent payment: | 8.65% annualized for quarter if Ford stock closes at or above trigger level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if Ford stock finishes at or above trigger level; otherwise 0.57870 Ford shares
|
| Call: | At par plus contingent payment if Ford stock closes at or above redemption threshold on any determination date
|
| Initial share price: | $17.28
|
| Trigger level: | $13.824, 80% of initial price
|
| Redemption threshold: | 105% of initial share price for first four determination dates, stepping up to 110% of initial share price for next four determination dates and 115% of initial price for final three determination dates
|
| Pricing date: | June 27
|
| Settlement date: | July 2
|
| Agents: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61761S570
|
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