Published on 8/30/2011 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $793,000 contingent annual interest notes linked to 20 stocks
By Angela McDaniels
Tacoma, Wash., Aug. 30 - Morgan Stanley priced $793,000 of contingent annual interest notes due Aug. 31, 2016 linked to a basket of 20 stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket includes 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.
On Aug. 31 of each year, the notes will pay a coupon equal to the sum of the basket stocks' weighted component returns, subject to a floor of zero. If a basket stock's return is flat or positive, its component return will be fixed at 11%. Otherwise, its component return will be the greater of the stock return and negative 20%.
The payout at maturity will be par.
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: | $793,000
|
| Maturity: | Aug. 31, 2016
|
| Coupon: | Sum of basket stocks' weighted component returns, subject to floor of zero; if a basket stock's return is flat or positive, its component return will be fixed at 11%; otherwise, its component return will be the greater of the stock return and negative 20%
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 617482WU4
|
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