Published on 11/16/2011 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $655,000 contingent coupon autocallables on S&P
By Jennifer Chiou
New York, Nov. 16 - Morgan Stanley priced $655,000 of contingent coupon autocallable notes due Nov. 17, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly. Holders will receive a contingent coupon if the index closes at or above 850 on the monthly observation date. Otherwise, the coupon will be zero for that interest payment period. The contingent coupon will initially be 7% per year, rising to 8% per year beginning on Nov. 17, 2015, to 9% per year on Nov. 17, 2019 and to 10% per year on Nov. 17, 2023.
Beginning on Nov. 17, 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 fall on the fourth business day preceding the 17th of each November, February, May and August.
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: | $655,000
|
| Maturity: | Nov. 17, 2026
|
| Contingent coupon: | Payable monthly if closing value of S&P 500 on monthly observation date is at least 850, otherwise zero for that month; contingent coupon is 7% per year initially, then 8% beginning on Nov. 17, 2015, 9% beginning on Nov. 17, 2019 and 10% beginning on Nov. 17, 2023
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call: | Beginning on Nov. 17, 2015, automatically at par if index closes at or above initial level on any quarterly observation date
|
| Initial index level: | 1,251.78
|
| Pricing date: | Nov. 14
|
| Settlement date: | Nov. 17
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 617482D92
|
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