By Toni Weeks
San Luis Obispo, Calif., Aug. 29 – Morgan Stanley priced $1.67 million of contingent income autocallable securities due Aug. 31, 2015 linked to the common stock of Twitter, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Twitter stock closes at or above the downside threshold level, 70% of the initial share price, on a monthly determination date, the notes will pay a contingent payment of $11.04167 per $1,000 note for that month. The payment is equivalent to 13.25% per year.
If the closing share price is greater than or equal to the initial share price on any of the first three quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. Otherwise, investors will be fully exposed to the share price decline from the initial price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Twitter, Inc. (Symbol: TWTR)
|
| Amount: | $1,665,000
|
| Maturity: | Aug. 31, 2015
|
| Coupon: | 13.25% per year, payable monthly if Twitter stock closes at or above 70% downside threshold level on monthly review date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent payment unless stock closes below downside threshold level, in which case full exposure to share price decline from initial level
|
| Call: | At par plus contingent coupon if shares close at or above initial share price on any of first three quarterly determination dates
|
| Initial share price: | $48.17
|
| Downside threshold: | $33.719, 70% of initial price
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 29
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 61761JSM2
|
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