Published on 5/24/2006 in the Prospect News Convertibles Daily.
New Issue: Morgan Stanley prices $13 million 10% HITS exchangeable for Newmont Mining
By Jennifer Chiou
New York, May 24 - Morgan Stanley priced $13 million of 10% HITS (High Income Trigger Securities) due June 20, 2007 exchangeable for Newmont Mining Corp. stock, according to an FWP filing with the Securities and Exchange Commission.
Payout at maturity will be determined according to the performance of Newmont Mining stock up to and including June 18, 2007, the determination date.
If the stock price has not decreased below the trigger level of $40.94, or 80% of the initial share price, investors will receive par. If the stock price has dropped below the trigger price, investors will collect 0.19543 Newmont Mining shares.
Issuer: | Morgan Stanley
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Issue: | HITS (High Income Trigger Securities) senior medium-term series F notes
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Underlying stock: | Newmont Mining Corp.
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Amount: | $13 million
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Maturity: | June 20, 2007
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Coupon: | 10%, payable quarterly
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Price: | Par of $10.00
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Initial share price: | $51.17
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Payout at maturity: | If the stock price drops below the trigger price, payout is 0.19543 shares of Wynn Resort stock; otherwise, par
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Trigger price: | $40.94, 80% of initial share price
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Exchange ratio: | 0.19543 shares of Wynne Resorts stock per HITS
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Determination date: | June 18, 2007
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Pricing date: | May 23
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Settlement date: | May 31
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Underwriter: | Morgan Stanley & Co.
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Listing: | "NHS" on American Stock Exchange
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