Published on 11/4/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.65 million 10.2% worst of autocallable RevCons on stocks
By Marisa Wong
Madison, Wis., Nov. 4 – Morgan Stanley priced $2.65 million of worst of fixed-coupon autocallable RevCons due Nov. 5, 2015 linked to the worst performing of the common stocks of Halliburton Co., Apple Inc. and International Business Machines Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is fixed at 10.2% per year and is payable quarterly.
The notes will be automatically called at par plus the quarterly coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date.
The payout at maturity will be par unless any stock closes below its downside threshold level, 65% of its initial level, on any day during the life of the notes and any underlying stock finishes below its initial price, in which case the payout will be a number of shares of the worst performing stock equal to the exchange ratio. The exchange ratio is par of $1,000 divided by the initial share price.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley
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Issue: | Worst of fixed-coupon autocallable RevCons
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Underlying stocks: | Halliburton Co. (Symbol: HAL), Apple Inc. (Symbol: AAPL), International Business Machines Corp. (Symbol: IBM)
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Amount: | $2.65 million
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Maturity: | Nov. 5, 2015
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Coupon: | 10.2%, payable quarterly
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Price: | Par of $1,000
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Payout at maturity: | Par unless any stock closes below its downside threshold level on any day during the life of the notes and any underlying stock finishes below its initial price, in which case a number of shares of the worst performing stock equal to the exchange ratio
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Call: | Automatically at par plus coupon if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date
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Initial prices: | $54.42 for Halliburton, $107.34 for Apple, $163.46 for IBM
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Downside thresholds: | $35.373 for Halliburton, $69.771 for Apple, $106.249 for IBM; 65% of initial prices
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Exchange ratios: | 18.37560 for Halliburton, 9.31619 for Apple, 6.11770 for IBM
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Pricing date: | Oct. 29
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Settlement date: | Nov. 5
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2%
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Cusip: | 61761JUD9
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