By Marisa Wong
Madison, Wis., Jan. 8 – Morgan Stanley priced $2.51 million of contingent income autocallable securities due Jan. 9, 2017 linked to the worst performing of Google Inc. shares and and Apple Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if each stock closes at or above its downside threshold level, 65% of its initial level, on the determination date for that quarter.
Beginning on July 9, 2015, the notes will be automatically redeemed at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly redemption determination date.
If the notes are not called and each stock finishes at or above its downside threshold level, the payout at maturity will be par plus the contingent coupon, if any.
If the notes are not called and either stock finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing stock from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Google Inc. (Symbol: GOOG) and Apple Inc. (Symbol: AAPL)
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| Amount: | $2.51 million
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| Maturity: | Jan. 9, 2017
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 8% per year if each stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | If each stock finishes at or above downside threshold level, par plus final contingent coupon, if any; if any stock finishes below downside threshold level, full exposure to decline of worst-performing stock from initial level
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| Call: | Automatically at par plus contingent coupon if each stock closes at or above initial level on any quarterly redemption determination date beginning on July 9, 2015
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| Initial prices: | $501.96 for Google, $106.26 for Apple
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| Downside thresholds: | $326.274 for Google, $69.069 for Apple; 65% of initial prices
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| Pricing date: | Jan. 6
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| Settlement date: | Jan. 9
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.25%
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| Cusip: | 61761JVZ9
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