Published on 8/25/2008 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $7.23 million 13.5% RevCons linked to Apple
By Susanna Moon
Chicago, Aug. 25 - Morgan Stanley priced $7.23 million of 13.5% annualized reverse convertible securities due Feb. 27, 2009 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Payout at maturity will be par unless the stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Apple shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the equivalent cash value.
Morgan Stanley & Co. Inc. is the agent.
Issuer: | Morgan Stanley
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Issue: | Reverse convertible securities
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Underlying stock: | Apple Inc. (Symbol: AAPL)
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Amount: | $7,228,000
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Maturity: | Feb. 27, 2009
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Coupon: | 13.5%, payable monthly
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Price: | Par
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Payout at maturity: | If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, 5.65643 Apple shares; otherwise, par
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Initial share price: | $176.79
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Trigger price: | $132.5925, 75% of initial share price
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Pricing date: | Aug. 22
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Settlement date: | Aug. 27
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Agent: | Morgan Stanley & Co. Inc.
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Fees: | 1.5%
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