By Susanna Moon
Chicago, June 19 - Morgan Stanley priced $4 million of contingent income autocallable securities due June 19, 2014 linked to Chipotle Mexican Grill, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at a rate of 9.75% per year if Chipotle stock closes at or above the 75% downside threshold level on the determination date for that quarter.
If the shares close at or above the initial price on any of the first three quarterly determination dates, the notes will be called at par plus the contingent coupon.
If Chipotle stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of Chipotle stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Chipotle Mexican Grill, Inc. (Symbol: CMG)
|
| Amount: | $4 million
|
| Maturity: | June 19, 2014
|
| Contingent coupon: | 9.75% per year, payable quarterly if Chipotle stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, 0.02717 Chipotle shares or, at issuer's option, cash amount equal to value of those shares
|
| Call: | At par plus contingent payment if closing share price is greater than or equal to initial price on any of first three quarterly determination dates
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| Initial share price: | $368.12
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| Downside threshold: | $276.09, 75% of initial share price
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| Pricing date: | June 14
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| Settlement date: | June 19
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 1.5%
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| Cusip: | 61762E695
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