By Toni Weeks
San Diego, June 1 - Morgan Stanley priced $11.75 million of contingent income autocallable securities due May 30, 2013 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Freeport-McMoRan stock closes at or above the downside threshold level - 75% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.54375 for each $10.00 note. Otherwise, no contingent payment will be made for that period.
If the closing share price is greater than or equal to the initial share price on any of the first three quarterly determination dates, 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 or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Freeport-McMoRan shares equal to the principal amount of notes divided by the initial share price or, at Morgan Stanley's option, the cash value of those shares.
Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Smith Barney LLC will handle distribution.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
|
| Amount: | $11.75 million
|
| Maturity: | May 30, 2013
|
| Coupon: | 5.4375% if closing price is at least 75% of initial price on quarterly determination date; otherwise, none
|
| Price: | Par
|
| Payout at maturity: | If final share price is at least 75% of initial price, par plus contingent quarterly payment; otherwise, 0.30855 Freeport-McMoRan shares per $10.00 principal amount, or, at Morgan Stanley's option, equivalent cash amount of those shares
|
| Initial price: | $32.41
|
| Threshold level: | $24.3075, 75% of initial share price
|
| Call: | Par plus contingent payment if closing share price greater than or equal to initial share price on first three quarterly determination dates
|
| Pricing date: | May 30
|
| Settlement date: | June 4
|
| Agent: | Morgan Stanley & Co. LLC, with Morgan Stanley Smith Barney LLC as distributor
|
| Fees: | 1.5%
|
| Cusip: | 61755S156
|
© 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.
