Published on 4/1/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.99 million contingent income autocallables linked to indexes
By Angela McDaniels
Tacoma, Wash., April 1 - Morgan Stanley priced $2.99 million of contingent income autocallable securities due April 3, 2018 linked to the worst performing of the S&P 500 index, the Euro Stoxx 50 index and the Topix index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its coupon barrier level, 75% of its initial index level, on a quarterly determination date, investors will receive a contingent coupon that quarter at the rate of 8.25% per year.
Beginning one year after issuance, the notes will be automatically redeemed at par plus the contingent coupon if each index closes at or above its initial level on any quarterly redemption determination date.
If the notes are not called and each index finishes at or above its downside threshold level, 55% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If any index finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | S&P 500, Euro Stoxx 50 and Topix
|
| Amount: | $2,991,000
|
| Maturity: | April 3, 2018
|
| Coupon: | If each index closes at or above coupon barrier on quarterly determination date, investors will receive contingent coupon that quarter at rate of 8.25% per year
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon, if any; if any index finishes below downside threshold level, full exposure to decline of worst-performing index from initial level
|
| Call: | Beginning one year after issuance, notes will be automatically redeemed at par plus contingent coupon if each index closes at or above initial level on any quarterly redemption determination date
|
| Initial index levels: | 1,569.19 for S&P 500, 2,624.02 for Euro Stoxx 50 and 1,036.78 for Topix
|
| Coupon barrier levels: | 1,176.8925 for S&P 500, 1,968.015 for Euro Stoxx 50 and 777.585 for Topix; 75% of initial levels
|
| Downside threshold: | 863.0545 for S&P 500, 1,443.211 for Euro Stoxx 50 and 570.229 for Topix; 55% of initial levels
|
| Pricing date: | March 28
|
| Settlement date: | April 3
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61761JEH8
|
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