By Susanna Moon
Chicago, Sept. 25 - Morgan Stanley priced $19.59 million of contingent income autocallable securities with step-up redemption threshold level due Sept. 26, 2016 linked to the Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if stock closes at or above its 80% trigger 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 redemption level on any of the first 11 determination dates. The redemption level will be 105% of the initial share price for the first four review dates, stepping up to 110% of the initial share price for the next four dates and then to 115% of the initial share price for the final three dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 80% trigger level, in which case investors will receive a number of Wells Fargo 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 with step-up redemption threshold level
|
| Underlying stock: | Wells Fargo & Co. (NYSE: WFC)
|
| Amount: | $19,588,930
|
| Maturity: | Sept. 26, 2016
|
| Coupon: | 8% annualized for each quarter that shares close at or above barrier level on quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below trigger level, in which case 0.23337 Wells Fargo shares
|
| Call: | At par plus the contingent coupon if stock closes at or above the redemption level on any of the first 11 determination dates; redemption level will be 105% of the initial share price for the first four review dates, stepping up to 110% of the initial share price for the next four dates and then to 115% of the initial share price for the final three dates
|
| Initial level: | $42.85
|
| Trigger level: | $34.28, 80% of initial level
|
| Pricing date: | Sept. 20
|
| Settlement date: | Sept. 25
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61762W125
|
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