By Marisa Wong
Morgantown, W.Va., Oct. 16 – Morgan Stanley priced $1.38 million of contingent income autocallable securities due Oct. 19, 2018 linked to Apple Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
If Apple shares close at or above the downside threshold level, 70% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 10%.
The notes will be called at par plus the contingent coupon if Apple shares close at or above the initial share price on any quarterly redemption determination date.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Apple Inc.
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| Amount: | $1,378,000
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| Maturity: | Oct. 19, 2018
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| Contingent payment: | 10% per year payable monthly if Apple shares close at or above the downside threshold level on monthly determination date
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus contingent coupon if Apple stock finishes at or above downside threshold; otherwise full exposure to any losses
|
| Call: | At par plus contingent payment if Apple stock closes at or above initial share price on any quarterly determination date
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| Initial share price: | $110.21
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| Trigger level: | $77.147, 70% of initial price
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| Pricing date: | Oct. 14
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| Settlement date: | Oct. 19
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| Agents: | Morgan Stanley & Co. LLC
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| Fees: | 2%
|
| Cusip: | 61761JM48
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