Published on 2/24/2011 in the Prospect News Structured Products Daily.
New issue: Morgan Stanley prices $196,000 10.25% autocallable RevCons on Whole Foods
By Jennifer Chiou
New York, Feb. 24 - Morgan Stanley priced $196,000 of 10.25% autocallable reverse convertible securities due Feb. 28, 2012 linked to Whole Foods Market, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The notes will be called at par if the stock closes at or above its initial share price on any of the four determination dates, which will be on the 23rd of May, August, November 2011 and February 2012.
The payout at maturity will be par unless Whole Foods stock falls by 25% or more during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Whole Foods shares equal to par divided by the initial share price or, at the issuer's option, the value of those shares in cash.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Autocallable reverse convertible securities
|
| Underlying stock: | Whole Foods Market, Inc. (Symbol: WFMI)
|
| Amount: | $196,000
|
| Maturity: | Feb. 28, 2012
|
| Coupon: | 10.25%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless Whole Foods stock falls by 25% or more during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Whole Foods shares equal to par divided by the initial share price or, at the issuer's option, the value of those shares in cash
|
| Call: | At par if stock closes at or above its initial share price on any of the four determination dates: 23rd of May, August, November 2011 and February 2012
|
| Initial share price: | $58.24
|
| Trigger price: | $43.68, 75% of initial price
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 25
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2.5%
|
| Cusip: | 617482RF3
|
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