By Toni Weeks
San Diego, Dec. 18 - Morgan Stanley priced $3.93 million of 0% lookback return optimization securities due June 19, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The starting level will be the lowest index closing level during the lookback period that is not greater than the closing level of the index on the pricing date. The lookback period consists of each trading day from the pricing date to Jan. 14, inclusive.
The ending level will be the closing level of the index on the June 16, 2014 final valuation date.
If the index return is positive, the payout at maturity will be par plus double the gain, subject to a maximum return of 15.92%.
If the index return is negative, investors will be fully exposed to losses.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Lookback return optimization securities
|
| Underlying index: | S&P 500
|
| Amount: | $3,927,700
|
| Maturity: | June 19, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index return is positive, par plus double the gain, capped at 15.92%; otherwise, full exposure to losses
|
| Initial level: | Equal to the lowest index level during the lookback observation period, which is every trading day from Dec. 14 to Jan. 14, inclusive, subject to a maximum level of the closing level of the index at pricing
|
| Pricing date: | Dec. 14
|
| Settlement date: | Dec. 19
|
| Agent: | Morgan Stanley & Co. LLC with UBS Financial Services Inc. as dealer
|
| Fees: | 2%
|
| Cusip: | 61761M128
|
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