By Toni Weeks
San Luis Obispo, Calif., March 18 – Morgan Stanley priced $2.72 million of contingent income autocallable securities due March 16, 2018 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment at an annual rate of 9.5% if the shares close at or above the 80% downside threshol level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any of the first 11 determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 80% downside threshold level, in which case investors will receive a number of Alibaba shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying ADSs: | Alibaba Group Holding Ltd. (Symbol: BABA)
|
| Amount: | $2,715,800
|
| Maturity: | March 16, 2018
|
| Coupon: | Contingent quarterly payment of 9.5% per year if shares close at or above downside threshold level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon unless shares finish below downside threshold level, in which case a number of Alibaba shares equal to $10 divided by initial price or, at issuer’s option, cash value of those shares
|
| Call: | At par plus contingent coupon if stock closes at or above its initial level on any of first 11 determination dates
|
| Initial price: | $81.86
|
| Downside threshold: | $65.488, 80% of initial price
|
| Pricing date: | March 13
|
| Settlement date: | March 18
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as dealer
|
| Fees: | 2.5%
|
| Cusip: | 61764V463
|
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