By Toni Weeks
San Luis Obispo, Calif., July 16 - Morgan Stanley priced $16.27 million of 0% knock-out notes due Jan. 20, 2015 linked to a basket of commodities, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of Brent blend crude oil, palladium and soybeans.
A knock-out event occurs if the final basket level is less than the knock-out level, 80% of the initial basket level.
If a knock-out event occurs, the payout at maturity will be par plus the basket return with full exposure to losses.
If a knock-out event does not occur, the payout will be par plus the greater of the basket return and the contingent minimum return of 11.4%, subject to a maximum return of 15%.
Morgan Stanley & Co. LLC is the agent, and J.P. Morgan Securities LLC is the dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Knock-out notes
|
| Underlying commodities: | Brent blend crude oil, palladium and soybeans, equally weighted
|
| Amount: | $16,272,000
|
| Maturity date: | Jan. 20, 2015
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final basket level is less than 80% of initial level, par plus basket return; otherwise, par plus greater of 11.4% and basket return, subject to maximum return of 15%
|
| Initial prices: | $108.81 for Brent blend, $716.00 for palladium and 1,429 cents for soybeans
|
| Knock-out buffer: | 20% of initial price
|
| Pricing date: | July 12
|
| Settlement date: | July 17
|
| Agents: | Morgan Stanley & Co. LLC (agent) and J.P. Morgan Securities LLC (dealer)
|
| Fees: | 1.25%
|
| Cusip: | 61762GAC8
|
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