By Angela McDaniels
Tacoma, Wash., June 14 - Morgan Stanley priced $6.93 million of 0% market-linked autocallable step-up notes due June 15, 2027 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be 7% for the first three years. Beginning June 15, 2015, investors will receive a contingent monthly coupon if the index closes at or above the barrier level, 840, on a monthly determination date. Otherwise, no contingent monthly coupon will be paid that month.
Initially, the contingent monthly coupon will be 8% per year. It will step up to 10% per year on June 15, 2018, to 12% per year on June 15, 2021 and to 14% per year on June 15, 2024.
Beginning in June 2017, the notes will be automatically redeemed at par plus the contingent monthly coupon if the index closes at or above the initial index level on any quarterly redemption determination date.
If the notes are not called, the payout at maturity will be par plus the final contingent monthly coupon, if any.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Market-linked autocallable step-up notes
|
| Underlying index: | S&P 500
|
| Amount: | $6,933,000
|
| Maturity: | June 15, 2027
|
| Coupon: | 7% for first three years; beginning June 15, 2015, coupon will be paid monthly if index closes at or above 840 on determination date for that month; contingent monthly coupon rate is initially 8% and steps up to 10% per year on June 15, 2018, to 12% per year on June 15, 2021 and to 14% per year on June 15, 2024
|
| Price: | Par
|
| Payout at maturity: | Par plus final contingent monthly coupon, if any
|
| Call: | Beginning in June 2017, notes will be automatically redeemed at par plus contingent monthly coupon if index closes at or above initial index level on any quarterly redemption determination date
|
| Initial index level: | 1,324.18
|
| Pricing date: | June 12
|
| Settlement date: | June 15
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 617482R71
|
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