By Angela McDaniels
Tacoma, Wash., April 24 - Morgan Stanley priced $3.28 million of trigger phoenix autocallable optimization securities due April 26, 2017 linked to the American Depositary Shares of BP plc, according to a 424B2 filing with the Securities and Exchange Commission.
If BP ADSs close at or above the trigger price - 60% of the initial ADS price - on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 10.14% per year. Otherwise, no coupon will be paid that month.
Beginning April 22, 2013, the notes will be called at par of $10 plus the contingent coupon if the ADSs close at or above the initial price on a monthly observation date.
If the notes are not called and BP ADSs finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the ADS price decline from the initial price.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying ADSs: | BP plc (NYSE: BP)
|
| Amount: | $3,276,200
|
| Maturity: | April 26, 2017
|
| Coupon: | 10.14% per year, payable monthly if ADSs close at or above trigger price on observation date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if BP ADSs finish at or above trigger price; otherwise, par plus ADS return
|
| Call: | Automatically at par plus contingent coupon if BP ADSs close at or above initial price on a monthly observation date from April 22, 2013 onward
|
| Initial ADS price: | $41.99
|
| Trigger price: | $25.19, 60% of initial ADS price
|
| Pricing date: | April 20
|
| Settlement date: | April 25
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | UBS Financial Services Inc.
|
| Fees: | 2.5%
|
| Cusip: | 61760T835
|
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