By Marisa Wong
Madison, Wis., April 8 – Morgan Stanley priced $2.88 million of contingent income autocallable securities due April 9, 2018 linked to United Continental Holdings, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
If United Continental stock closes at or above the downside threshold level, 75% of the initial price, on a quarterly determination date, the notes will pay an annualized contingent payment of 15.6% for that quarter.
If United Continental stock closes at or above its initial price on any of the first 11 quarterly determination dates, the notes will be redeemed at par plus the contingent payment.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of United Continental shares equal to $10 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
The agent is Morgan Stanley & Co. LLC.
Issuer: | Morgan Stanley
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Issue: | Contingent income autocallable securities
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Underlying stock: | United Continental Holdings, Inc. (Symbol: UAL)
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Amount: | $2,881,450
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Maturity: | April 9, 2018
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Contingent payment: | 15.6% annualized for quarter if United Continental stock closes at or above downside threshold level on determination date for that quarter
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Price: | Par of $10
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Payout at maturity: | Par plus contingent coupon if United Continental stock finishes at or above downside threshold; otherwise, 0.16160 United Continental shares or, at the issuer’s option, an amount in cash equal to the value of those shares
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Call: | At par plus contingent payment if United Continental stock closes at or above initial share price on any of the first 11 quarterly determination dates
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Initial share price: | $61.88
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Downside threshold level: $46.41, 75% of initial price
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Pricing date: | April 2
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Settlement date: | April 8
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Agents: | Morgan Stanley & Co. LLC
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Fees: | 2.5%
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Cusip: | 61764V596
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