Published on 8/28/2012 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3.79 million contingent income notes linked to Russell 2000
By Angela McDaniels
Tacoma, Wash., Aug. 28 - Morgan Stanley priced $3.79 million of contingent income securities due Aug. 29, 2017 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent monthly payment of 10% per year, or $8.3333 per $1,000 principal amount of notes, if the index closes at or above the downside threshold level on the determination date for that month. Otherwise, no coupon will be paid that month. The downside threshold level is 68% of the initial index level.
If the final index level is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent monthly payment. If the final index level is less than the downside threshold level, investors will be fully exposed to the decline of the index from the initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income securities
|
| Underlying index: | Russell 2000
|
| Amount: | $3,792,000
|
| Maturity: | Aug. 29, 2017
|
| Coupon: | 10% per year, or $8.3333 per $1,000 principal amount of notes, if index closes at or above downside threshold level on determination date for that month; otherwise, no coupon will be paid that month
|
| Price: | Par
|
| Payout at maturity: | If final index level is greater than or equal to downside threshold level, par plus contingent monthly payment; otherwise, full exposure to decline of index from initial level
|
| Initial index level: | 809.19
|
| Downside threshold level: | 550, 68% of initial level
|
| Pricing date: | Aug. 24
|
| Settlement date: | Aug. 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 617482X58
|
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