By Toni Weeks
San Luis Obispo, Calif., June 25 - Morgan Stanley priced $10.75 million of contingent income autocallable securities due June 26, 2014 linked to lululemon athletica inc. shares, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 12% if lululemon stock closes at or above the 70% downside threshold level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial share price on any of the first three quarterly determination dates.
If lululemon stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of lululemon stock equal to $10 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: | lululemon athletica inc. (Symbol: LULU)
|
| Amount: | $10,749,640
|
| Maturity: | June 26, 2014
|
| Contingent coupon: | 12% per year, payable quarterly if lululemon stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, 0.16155 lululemon shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | On any of first three quarterly determination dates at par plus contingent payment if shares close at or above initial share price
|
| Initial share price: | $61.90
|
| Downside threshold: | $43.33, 70% of initial share price
|
| Pricing date: | June 21
|
| Settlement date: | June 26
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61762E760
|
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