By Jennifer Chiou
New York, July 2 - Morgan Stanley priced $5,915,250 of contingent income autocallable securities due July 5, 2016 linked to the worst performing of the common stocks of Goldman Sachs Group, Inc. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
If both Goldman Sachs and Wells Fargo shares close at or above their downside threshold levels - 70% of the respective initial share prices - on a quarterly determination date, investors will receive a contingent payment of $0.28375 for each $10.00 note. Otherwise, no contingent payment will be made for that period.
If the closing share price of each underlying stock is greater than or equal to its initial share price on any quarterly determination date, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price of each underlying stock is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final price of either stock is less than the downside threshold level, investors will be fully exposed to the decline of the worst -performing stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Goldman Sachs Group, Inc. (Symbol: GS) and Wells Fargo & Co. (Symbol: WFC)
|
| Amount: | $5,915,250
|
| Maturity: | July 5, 2016
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| Coupon: | If both stocks close at or above downside threshold levels on quarterly determination date, $0.28375 for each $10.00 note; otherwise, no contingent payment will be made for that period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final price of each stock is greater than or equal to downside threshold level, par plus contingent payment; otherwise, full exposure to decline of worst-performing stock
|
| Call: | Automatically at par plus contingent payment if each stock closes at or above initial share price on any quarterly determination date
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| Initial share prices: | $151.25 for Goldman Sachs and $41.27 for Wells Fargo
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| Downside threshold levels: | $105.875 for Goldman Sachs and $28.889 for Wells Fargo; 70% of initial prices
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| Pricing date: | June 28
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| Settlement date: | July 3
|
| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.25%
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| Cusip: | 61762E869
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