By Angela McDaniels
Tacoma, Wash., Oct. 13 - Morgan Stanley priced $1.75 million of contingent coupon autocallable notes due Oct. 14, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly. The coupon will be fixed at 8% for the first year. After that, holders will receive a contingent coupon if the index closes at or above 800 on the monthly observation date. Otherwise, the coupon will be zero for that interest payment period. The contingent coupon will be 8% per year beginning Oct. 14, 2012 and will step up to 10% per year on Oct. 14, 2019 and to 12% per year on Oct. 14, 2023.
Beginning in October 2015, the notes will be called at par plus the contingent coupon if the index closes at or above its initial level on any quarterly redemption determination date, which are the fourth business day preceding Jan. 14, April 14, July 14 and Oct. 14.
If the notes are not called, the payment at maturity will be par plus the final contingent coupon, if any.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent coupon autocallable notes
|
| Underlying index: | S&P 500
|
| Amount: | $1.75 million
|
| Maturity: | Oct. 14, 2026
|
| Coupon: | 8% for first year; after that, contingent coupon if closing value of S&P 500 on monthly observation date is at least 800 and zero otherwise; contingent coupon is 8% per year beginning Oct. 14, 2012 and steps up to 10% per year on Oct. 14, 2019 and to 12% per year on Oct. 14, 2023; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call: | Beginning in October 2015, automatically at par if index closes at or above initial level on any quarterly observation date
|
| Initial index level: | 1,195.54
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| Pricing date: | Oct. 11
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| Settlement date: | Oct. 14
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 617482YR9
|
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