Morgan Stanley plans to price knock-out notes tied to Merck stock

By Jennifer Chiou

New York, June 14 - Morgan Stanley plans to price 0% knock-out notes due July 5, 2012 linked to the common stock of Merck & Co., Inc., according to an FWP with the Securities and Exchange Commission.

If the price of Merck stock falls by more than 25% from the initial share price during the life of the notes, the payout at maturity will be par plus the stock return, which could be positive or negative.

Otherwise, the payout will be par plus the greater of the stock return and a contingent minimum return of at least 5.5%.

In either case, the payout will be subject to a maximum return of at least 20%. The exact minimum and maximum returns will be set at pricing.

The notes (Cusip: 617482VD3) will price on June 17 and settle on June 24.

J.P. Morgan Securities LLC is the dealer. Morgan Stanley & Co. Inc. is the agent with JPMorgan Chase Bank, NA as co-agent.

© 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.