By Marisa Wong
Madison, Wis., Feb. 24 - Morgan Stanley priced $19.51 million of contingent income autocallable securities due Feb. 25, 2014 linked to the common stock of Wells Fargo & Co., according to an FWP filing with the Securities and Exchange Commission.
If Wells Fargo stock closes above the downside threshold level - 75% of the initial share price - on a semiannual determination date, investors will receive a contingent payment of $0.425 for each $10.00 note. Otherwise, no contingent payment will be made for that semiannual period.
If the closing share price is greater than the initial share price on any semiannual determination date, the notes will be automatically called at par plus the contingent payment.
If the notes are not called and the final share price is greater than the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, the payout will be par plus the stock return.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Wells Fargo & Co.
|
| Amount: | $19,508,940
|
| Maturity: | Feb. 25, 2014
|
| Coupon: | If Wells Fargo stock closes above downside threshold level on a semiannual determination date, $0.425 per note; otherwise, no contingent payment for that period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than downside threshold level, par plus $0.425; otherwise, par plus stock return
|
| Call: | Automatically at par plus $0.275 if stock closes above initial share price on any quarterly determination date
|
| Initial share price: | $31.38
|
| Downside threshold price: | $25.535, 75% of initial price
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 25
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2.5%
|
| Cusip: | 61760E754
|
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