By Angela McDaniels
Tacoma, Wash., May 21 - Morgan Stanley priced $1.89 million of phoenix autocallable securities due June 4, 2014 linked to the common stock of Occidental Petroleum Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 12.6% per year if Occidental shares close at or above the downside threshold level on the observation date for that quarter. Otherwise, no interest will be paid that quarter. The downside threshold level is 80% of the initial share price.
The notes will be called at par plus the contingent coupon if Occidental shares close at or above the initial share price on any of the first three determination dates.
If the notes are not called and Occidental shares finish at or above the downside threshold level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the decline in the share price.
Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA as dealers.
| Issuer: | Morgan Stanley
|
| Issue: | Phoenix autocallable notes
|
| Underlying stock: | Occidental Petroleum Corp. (NYSE: OXY)
|
| Amount: | $1,886,000
|
| Maturity: | June 4, 2014
|
| Coupon: | Notes pay quarterly contingent coupon at rate of 12.6% per year if Occidental shares close at or above downside threshold level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If Occidental shares finish at or above downside threshold level, par plus contingent coupon; otherwise, full exposure to decline in share price
|
| Call: | At par plus contingent coupon if Occidental shares close at or above initial price on Aug. 29, 2013, Nov. 28, 2013 or Feb. 27, 2014
|
| Initial share price: | $92.84
|
| Trigger price: | $74.272, 80% of initial share price
|
| Pricing date: | May 17
|
| Settlement date: | May 22
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealers: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 61761JGL7
|
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