Published on 2/1/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $5.2 million enhanced trigger jump notes on basket
By Marisa Wong
Madison, Wis., Feb. 1 - Morgan Stanley priced $5.2 million of 0% enhanced trigger jump securities due Feb. 6, 2017 linked to a basket of indexes and exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the iShares MSCI EAFE index fund with a 20% weight, the iShares MSCI Emerging Markets index fund with a 10% weight and the iShares FTSE China 25 index fund with a 10% weight.
If the final basket level is greater than the downside threshold level, the payout at maturity will be par of $10 plus the greater of the fixed percentage of 16.32% and the basket return. The downside threshold level is 70% of the initial basket level.
If the final basket level is less than or equal to the downside threshold value, investors will be fully exposed to the basket's decline from the initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Enhanced trigger jump securities
|
| Underlying basket: | S&P 500 index with a 40% weight, Russell 2000 index with a 20% weight, iShares MSCI EAFE index fund with a 20% weight, iShares MSCI Emerging Markets index fund with a 10% weight and iShares FTSE China 25 index fund with a 10% weight
|
| Amount: | $5,199,960
|
| Maturity: | Feb. 6, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final basket level is greater than 70% of initial level, par plus greater of 16.32% and basket return; otherwise, full exposure to basket's decline from initial level
|
| Initial levels: | 1,501.96 for S&P 500, 896.91 for Russell 2000, $44.13 for iShares MSCI EM, $59.20 for iShares MSCI EAFE, $41.60 for iShares FTSE China
|
| Pricing date: | Jan. 30
|
| Settlement date: | Feb. 4
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61761M342
|
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