By Angela McDaniels
Tacoma, Wash., March 19 - Morgan Stanley priced $24.2 million of contingent income autocallable securities due March 21, 2016 with step-up redemption threshold level feature linked to the common stock of JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
If JPMorgan stock closes at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment of 2.1875% for that quarter. The amount is equivalent to 8.75% per year.
If JPMorgan stock closes at or above the redemption threshold level on any of first 11 quarterly determination dates, the notes will be redeemed at par plus the contingent payment. The redemption threshold level is 105% of the initial share price on determination dates one through four, 110% of the initial share price on determination dates five through eight and 115% of the initial share price on determination dates nine through 11.
If JPMorgan stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment. Otherwise, the payout will be a number of JPMorgan shares equal to $10 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
The agent is Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities with step-up redemption threshold level feature
|
| Underlying index: | JPMorgan Chase & Co. (NYSE: JPM)
|
| Amount: | $24.2 million
|
| Maturity: | March 21, 2016
|
| Contingent payment: | 2.1875% for quarter if JPMorgan stock closes at or above redemption threshold level on determination date for that quarter; redemption threshold level is 105% of initial share price on determination dates one through four, 110% of initial share price on determination dates five through eight and 115% of initial share price on determination dates nine through 11
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if JPMorgan stock finishes at or above downside threshold level; otherwise, 0.19992 JPMorgan shares or cash equivalent
|
| Call: | At par plus contingent payment if JPMorgan stock closes at or above initial share price on any of first 11 determination dates
|
| Initial share price: | $50.02
|
| downside threshold level: | $37.515, 75% of initial price
|
| Pricing date: | March 15
|
| Settlement date: | March 20
|
| Agents: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 2.25%
|
| Cusip: | 61761M680
|
© 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.
