By Susanna Moon
Chicago, March 18 - Morgan Stanley priced $7.54 million of contingent income autocallable securities due March 24, 2014 linked to Apple Inc. shares, according to an FWP filing with the Securities and Exchange Commission.
If Apple shares close above the downside threshold level - 75% of the initial share price - on a semiannual determination date, investors will receive a contingent payment of 5.4%.
If the shares close above the initial share price on any of the first five determination dates, the notes will be called at par plus the contingent payment.
The payout at maturity will be par plus the contingent payment if Apple shares finish above the downside threshold level.
Otherwise, the payout will be par plus the stock return with exposure to losses.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $7,536,100
|
| Maturity: | March 24, 2014
|
| Coupon: | 5.4% if Apple stock closes above downside threshold level on a semiannual determination date
|
| Price: | Par of $10.00
|
| Payout at maturity: | If shares finish above downside threshold level, par plus 5.4%; otherwise, par plus share return, with exposure to losses
|
| Call: | At par plus 5.4% if stock closes above initial share price on first five determination dates
|
| Initial share price: | $334.64
|
| Downside threshold price: | $250.98, 75% of initial price
|
| Pricing date: | March 17
|
| Settlement date: | March 22
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2.5%
|
| Cusip: | 61760E804
|
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