By Jennifer Chiou
New York, March 1 - Morgan Stanley priced $12 million of contingent income autocallable securities due Feb. 27, 2013 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Amazon.com stock closes at or above the downside threshold level - 80% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.2875 for each $10.00 note. Otherwise, no contingent payment will be made that quarter.
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 Amazon.com shares equal to $10.00 divided by the initial share price or, at Morgan Stanley's option, a cash amount equal to the value of those shares.
Morgan Stanley & Co. LLC is the agent. Distribution is through Morgan Stanley Smith Barney LLC.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Amazon.com, Inc. (NYSE: AMZN)
|
| Amount: | $12 million
|
| Maturity: | Feb. 27, 2013
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| Contingent payment: | If Amazon.com stock closes at or above downside threshold level on quarterly determination date, $0.2875 per note; otherwise, no contingent payment will be made that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, 0.05441 Amazon.com shares or cash amount equal to value of those shares
|
| Call: | Automatically at par plus contingent payment if closing share price is greater than or equal to initial share price on May 25, Aug. 25, 2012, Nov. 25, 2012 or Feb. 25, 2013
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| Initial share price: | $183.80
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| Downside threshold level: | $147.04, 80% of initial share price
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| Pricing date: | Feb. 28
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| Settlement date: | March 2
|
| Agent: | Morgan Stanley & Co. LLC
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| Distribution: | Morgan Stanley Smith Barney LLC
|
| Fees: | 1.5%
|
| Cusip: | 61760T454
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