Morgan Stanley to price 0% annual review notes linked to S&P 500 via JPMorgan

By Jennifer Chiou

New York, June 29 - Morgan Stanley plans to price 0% annual review notes due July 20, 2010 linked to the S&P 500 index via JPMorgan Chase Bank NA and J.P. Morgan Securities Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will price on July 6 and settle on July 13.

The notes will be automatically called at increasing premiums if the index level is at or above the initial index level on one of three annual review dates.

For each $1,000 principal amount, the redemption amount will be par plus at least 8.97% if the notes are called on July 15, 2008, par plus at least 17.94% if called on July 15, 2009 and par plus at least 26.91% if called on July 15, 2010. The exact redemption amounts will be determined at pricing.

If the notes are not called, the payout at maturity will be par unless the index declines by more than 10%. Investors will lose 1.1111% for every 1% decline in the index beyond 10%.

© 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.