By Angela McDaniels
Tacoma, Wash., July 30 - Morgan Stanley priced $12.89 million of 0% market-linked autocallable step-up notes due July 30, 2027 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a contingent monthly coupon if the index closes at or above the barrier level, 990, on a monthly determination date. Otherwise, no contingent monthly coupon will be paid that month.
Initially, the contingent monthly coupon is 7% per year. It will step up to 8% per year on July 30, 2015, to 10% per year on July 30, 2018, to 12% per year on July 30, 2021 and to 15% on July 30, 2024.
Beginning in July 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: | $12,888,000
|
| Maturity: | July 30, 2027
|
| Coupon: | Coupon will be paid monthly if index closes at or above 990 on determination date for that month; contingent monthly coupon rate is initially 7% and steps up to 8% per year on July 30, 2015, to 10% per year on July 30, 2018, to 12% per year on July 30, 2021 and to 15% on July 30, 2024
|
| Price: | Par
|
| Payout at maturity: | Par plus final contingent monthly coupon, if any
|
| Call: | Beginning in July 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: | 1,360.02
|
| Pricing date: | July 26
|
| Settlement date: | July 31
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 617482U44
|
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