By Jennifer Chiou
New York, March 11 - Morgan Stanley priced $10,679,890 of contingent income autocallable securities due March 12, 2015 linked to Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.2% if the stock closes at or above its 75% barrier level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first three determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 75% barrier level, in which case investors will receive a number of Valero shares equal to par of $10.00 divided by the initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
|
| Amount: | $10,679,890
|
| Maturity: | March 12, 2015
|
| Coupon: | 11.2% annualized for each quarter that shares close at or above barrier level on quarterly determination date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below barrier level, in which case 0.18871 Valero shares
|
| Call: | At par plus contingent coupon if stock closes at or above initial price on any of first three review dates
|
| Initial price: | $52.99
|
| Barrier price: | $39.743, 75% of initial price
|
| Pricing date: | March 7
|
| Settlement date: | March 12
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61760S464
|
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