Morgan Stanley plans protected absolute return barrier notes linked to S&P 500

By Susanna Moon

Chicago, Jan. 26 - Morgan Stanley plans to price zero-coupon protected absolute return barrier notes due Aug. 20, 2010 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index stays within a specified range during the life of the notes, payout at maturity will be par of $10 plus the absolute value of the index return. The maximum return will be 130% to 135% of par if the index finishes above its initial value, and the maximum return will be 120% to 125% of par if the index finishes below its initial value.

Otherwise, payout will be par.

The lower barrier will be 75% to 80% of the initial index level, and the upper barrier will be 130% to 135% of the initial level.

The exact range and cap will be set at pricing.

The notes are expected to price and settle in February.

Morgan Stanley & Co. Inc. is the agent.

© 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.