By Susanna Moon
Chicago, April 23 - Morgan Stanley priced $3.88 million of contingent income autocallable securities due April 24, 2015 linked to Valeant Pharmaceuticals International, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10% if Valeant shares close at or above the barrier level, 56.15% of the initial share price, on a determination date for that quarter.
If the stock closes at or above the initial share price on any of the first three determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
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 payment.
Otherwise, the payout will be a number of Valeant shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Valeant Pharmaceuticals International, Inc. (Symbol: VRX)
|
| Amount: | $3.88 million
|
| Maturity: | April 24, 2015
|
| Coupon: | 10% annualized per quarter that stock closes at or above its barrier level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above barrier level, par plus the final contingent coupon; otherwise, 0.07936 Valeant shares
|
| Call: | At par plus the contingent coupon if stock closes at or above its initial level on any of the first three quarterly determination dates
|
| Initial level: | $126.01
|
| Barrier level: | $70.755, 56.15% of initial level
|
| Pricing date: | April 21
|
| Settlement date: | April 24
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 1.5%
|
| Cusip: | 61760S811
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