By Toni Weeks
San Luis Obispo, Calif., July 31 – Morgan Stanley priced $2.43 million of contingent income autocallable securities due July 31, 2018 linked to the class A common stock of GameStop Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If GameStop shares close at or above the downside threshold level, 70% of the initial price, on a monthly determination date, the notes will pay an annualized contingent coupon of 14.5% for that month.
If the closing price is greater than or equal to the initial share price on any quarterly early redemption date beginning Jan. 31, 2016, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final price is greater than or equal to the 70% downside threshold level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors receive par plus the stock return, with full exposure to losses.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | GameStop Corp. (Symbol: GME)
|
| Amount: | $2,425,000
|
| Maturity: | July 31, 2018
|
| Coupon: | 14.5% per year, payable monthly if GameStop shares close at or above downside threshold level on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | Automatically at par plus contingent coupon if GameStop shares close at or above initial share price on any quarterly redemption determination date beginning Jan. 31, 2016
|
| Initial share price: | $45.28
|
| Downside threshold: | $31.696, 70% of initial share price
|
| Pricing date: | July 28
|
| Settlement date: | July 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61761JE21
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
