By Marisa Wong
Madison, Wis., Nov. 2 - Morgan Stanley priced $25 million of contingent income autocallable securities due Oct. 30, 2013 linked to the common stock of Coach, Inc., according to an FWP filing with the Securities and Exchange Commission.
If Coach stock closes above the downside threshold level - 70% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.375 for each $10.00 note. Otherwise, no contingent payment will be made for that period.
If the stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Coach shares equal to the principal amount of notes divided by the initial share price or, at Morgan Stanley'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: | Coach, Inc. (NYSE: COH)
|
| Amount: | $24,999,980
|
| Maturity: | Oct. 30, 2013
|
| Coupon: | 3.75% if closing price is at least 70% of initial price on quarterly determination date; otherwise, none
|
| Price: | Par
|
| Payout at maturity: | If final share price is at least 70% of initial price, par plus contingent quarterly payment; otherwise, 0.17841 Coach shares or, at issuer's option, cash equivalent
|
| Call option: | Par plus contingent payment if closing share price is greater than initial price on first three quarterly determination dates
|
| Initial price: | $56.05
|
| Downside threshold: | $39.235, 70% of initial share price
|
| Pricing date: | Oct. 31
|
| Settlement date: | Nov. 5
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61755S776
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
