Published on 5/11/2010 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $240,000 autocallable quarterly review notes tied to precious metals
By Angela McDaniels
Tacoma, Wash., May 11 - Morgan Stanley priced $240,000 of 0% autocallable quarterly review notes due Nov. 15, 2011 linked to a basket of precious metals, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket consists of platinum and palladium.
The notes will be automatically called at par plus an annualized premium of 13.5% if the basket level is greater than or equal to the initial level on any of six quarterly review dates, which are Aug. 9, 2010, Nov. 8, 2010, Feb. 7, 2011, May 9, 2011, Aug. 8, 2011 and Nov. 7, 2011.
If the notes are not called and the final basket level is greater than or equal to the initial level, the payout at maturity will be par plus 20.25%. Investors will receive par if the basket level has declined by no more than 15% and will lose 1.1765% for every 1% decline beyond the buffer.
J.P. Morgan Securities Inc. and JPMorgan Chase Bank, NA are the agents.
| Issuer: | Morgan Stanley
|
| Issue: | Autocallable quarterly review notes
|
| Underlying commodities: | Platinum and palladium, equally weighted
|
| Amount: | $240,000
|
| Maturity: | Nov. 15, 2011
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 20.25% if final basket level is greater than or equal to initial basket level; par if basket falls by 15% or less; 1.1765% loss for every 1% decline beyond 15%
|
| Call: | Automatically at par plus 13.5% per year if basket closes at or above initial level on Aug. 9, 2010, Nov. 8, 2010, Feb. 7, 2011, May 9, 2011, Aug. 8, 2011 or Nov. 7, 2011
|
| Initial prices: | $1,651 for platinum and $505 for palladium
|
| Pricing date: | May 7
|
| Settlement date: | May 14
|
| Agents: | J.P. Morgan Securities Inc. and JPMorgan Chase Bank, NA
|
| Fees: | 1.25%
|
| Cusip: | 617482LN2
|
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