By Marisa Wong
Madison, Wis., Aug. 17 - Morgan Stanley priced $41.97 million of contingent income autocallable securities due Aug. 20, 2019 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above the barrier level, 50% of the initial index level, on a quarterly determination date, investors will receive a contingent coupon that quarter at the rate of 8.5% per year. If the index closes below the barrier level, no contingent coupon will be paid that quarter.
If the index closes at or above the initial level on any annual redemption determination date, the notes will be automatically redeemed at par plus the contingent coupon. The redemption determination dates will fall on Aug. 20 of each year from 2013 through 2018.
If the notes are not called and the index finishes at or above the barrier level, the payout at maturity will be par plus the final contingent coupon. If the index finishes below the barrier level, investors will be fully exposed to the index's decline from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying index: | Russell 2000
|
| Amount: | $41,968,000
|
| Maturity: | Aug. 20, 2019
|
| Coupon: | 8.5% per year if index closes at or above barrier level on a quarterly determination date; otherwise, no coupon for that quarter
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above barrier level, par plus final contingent coupon; otherwise, full exposure to index decline from initial level
|
| Call: | Automatically at par plus contingent coupon if index closes at or above initial level on any annual redemption determination date
|
| Initial level: | 804.26
|
| Barrier level: | 402.13, 50% of initial level
|
| Pricing date: | Aug. 15
|
| Settlement date: | Aug. 20
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 617482X33
|
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