Published on 9/10/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4.49 million worst of autocallables linked to four stocks
By Marisa Wong
Madison, Wis., Sept. 10 – Morgan Stanley priced $4.49 million of worst of autocallable securities due March 15, 2016 linked to the worst performing of the common stocks of Apple Inc., Amgen Inc., Bank of America Corp. and International Business Machines Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus a call return of 13.15% per year if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date.
If the notes are not called and each stock finishes at or above its initial share price, the payout at maturity will be a fixed payment of $1,197.25 per $1,000 principal amount of notes, which corresponds to a return of 13.15% per year.
If any stock finishes below its initial share price but each stock finishes at or above its downside threshold level, 60% of its initial share price, the payout will be par.
If any stock finishes below its downside threshold level, the payout will be a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
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| Issue: | Worst of autocallable securities
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| Underlying stocks: | Apple Inc. (Symbol: AAPL), Amgen Inc. (Symbol: AMGN), Bank of America Corp. (Symbol: BAC), International Business Machines Corp. (Symbol: IBM)
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| Amount: | $4.49 million
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| Maturity: | March 15, 2016
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| Coupon: | 0%
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| Price: | Par of $1,000
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| Payout at maturity: | If each stock finishes at or above its initial share price, $1,197.25 per $1,000 principal amount; if any stock finishes below its initial share price but each stock finishes at or above its downside threshold level, par; otherwise, a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock
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| Call: | Automatically at par plus 13.15% per year if each stock closes at or above its initial share price on any quarterly determination date other than the final determination date
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| Initial prices: | $98.36 for Apple, $139.27 for Amgen, $16.35 for BofA, $190.14 for IBM
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| Downside thresholds: | $59.016 for Apple, $83.562 for Amgen, $9.81 for BofA, $114.084 for IBM; 60% of initial prices
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| Exchange ratios: | 10.1667 for Apple, 7.1803 for Amgen, 61.1621 for BofA, 5.2593 for IBM
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 15
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3%
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| Cusip: | 61761JTE9
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