Published on 1/17/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.31 million contingent income autocallables tied to MetLife
By Marisa Wong
Madison, Wis., Jan. 17 - Morgan Stanley priced $3.31 million of contingent income autocallable securities due Jan. 18, 2018 linked to the common stock of MetLife, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If MetLife stock closes at or above the barrier level - 70% of the initial share price - on a monthly determination date, the notes will pay a contingent monthly coupon of 9% per year. Otherwise, no contingent coupon will be paid that month.
If the closing share price is greater than or equal to the initial share price on any quarterly determination date beginning Jan. 18, 2015, the notes will be automatically redeemed at par plus the contingent coupon.
If the notes are not called and the final share price is greater than or equal to the barrier level, the payout at maturity will be par plus the contingent coupon. If the final share price is less than the barrier level, the payout will be a number of MetLife shares equal to the principal amount of notes divided by the initial share price or, at the issuer's option, the cash value of those shares.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | MetLife, Inc. (Symbol: MET)
|
| Amount: | $3,309,000
|
| Maturity: | Jan. 18, 2018
|
| Coupon: | 9% per year if closing price is at least barrier price on monthly determination date; otherwise, none
|
| Price: | Par of $1,000
|
| Payout at maturity: | If final share price is at least barrier price, par plus contingent coupon; otherwise, number of MetLife shares equal to $1,000 divided by initial share price or, at Morgan Stanley's option, cash equivalent
|
| Call: | Par plus contingent coupon if closing share price is greater than or equal to initial share price on any quarterly determination date beginning Jan. 18, 2015
|
| Initial price: | $36.29
|
| Barrier level: | $25.403, 70% of initial share price
|
| Pricing date: | Jan. 15
|
| Settlement date: | Jan. 18
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JAU3
|
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