Published on 6/28/2011 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.47 million contingent interest notes linked to 20 stocks
By Susanna Moon
Chicago, June 28 - Morgan Stanley priced $1.47 million of contingent annual interest notes due June 29, 2016 linked a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.
The basket includes equal weights of Abbott Laboratories, Altria Group, Inc., Bristol-Myers Squibb Co., Consolidated Edison, Inc., Duke Energy Corp., FirstEnergy Corp., Frontier Communications Corp., Johnson & Johnson, Kraft Foods Inc., Lockheed Martin Corp., McDonald's Corp., Merck & Co., Inc., Pepco Holdings, Inc., Pfizer Inc., Pitney Bowes Inc., PPL Corp., Sysco Corp., TECO Energy, Inc., Verizon Communications Inc. and Windstream Corp.
The notes will pay a coupon in May of each year equal to the sum of the weighted performances of the basket stocks, subject to a minimum coupon of zero.
If a basket stock's return is flat or positive, its performance will be fixed at 11%. If its return is negative, its performance will be the greater of the stock return and negative 20%.
The payout at maturity will be par plus the final coupon.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent annual interest notes
|
| Underlying stocks: | Abbott Laboratories, Altria Group, Inc., Bristol-Myers Squibb Co., Consolidated Edison, Inc., Duke Energy Corp., FirstEnergy Corp., Frontier Communications Corp., Johnson & Johnson, Kraft Foods Inc., Lockheed Martin Corp., McDonald's Corp., Merck & Co., Inc., Pepco Holdings, Inc., Pfizer Inc., Pitney Bowes Inc., PPL Corp., Sysco Corp., TECO Energy, Inc., Verizon Communications Inc. and Windstream Corp., equally weighted
|
| Amount: | $1,466,000
|
| Maturity: | June 29, 2016
|
| Coupon: | Equal to sum of weighted performances of basket stocks, subject to minimum of zero; payable annually
|
| Stock performance: | If a basket stock's return is flat or positive, 11%; if its return is negative, greater of stock return and negative 20%
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon
|
| Pricing date: | June 24
|
| Settlement date: | June 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 617482UR3
|
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