Morgan Stanley to price 0% notes linked to basket of six currencies

By E. Janene Geiss

Philadelphia, Aug. 29 - Morgan Stanley plans to price an offering of zero-coupon 50% principal-protected notes due March 31, 2009 linked to a basket of currencies, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights (16.6667%) of the Australian dollar, British pound, Canadian dollar, euro, New Zealand dollar and Norwegian krone.

The payout at maturity will be based upon the performance of the basket currencies against the dollar. If the currencies strengthen, the payout will be par plus the basket increase multiplied by a leverage factor, which is expected to be 160% to 180% and will be determined at pricing.

If the currencies weaken by relative to the dollar by 10% or less, the payout will be par. If the currencies weaken relative to the dollar beyond 10%, investors will participate in losses up to a maximum loss of 50% of par, or $500.

The notes will price and settle in September.

Morgan Stanley & Co. Inc. will be the 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.