By Toni Weeks
San Luis Obispo, Calif., Dec. 4 – Morgan Stanley priced $1 million of 0% participation securities due April 5, 2016 linked to West Texas Intermediate light sweet crude oil futures contracts, according to an FWP filing with the Securities and Exchange Commission.
If the final price is greater than the strike commodity price, the payout at maturity will be par plus the commodity strike return. Investors will be exposed to any decline in the strike commodity price.
The strike commodity price is equal to 106.7% of the initial commodity price, which was the official settlement price on Dec. 1 per barrel of WTI crude oil on the NYMEX Division of the first nearby month futures contract, stated in dollars.
The commodity strike return is (i) the final commodity price on the March 23, 2016 final valuation date minus the strike commodity price divided by (ii) the strike commodity price.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Participation securities
|
| Underlying asset: | West Texas Intermediate light sweet crude oil futures contracts
|
| Amount: | $1 million
|
| Maturity: | April 5, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final price is greater than strike commodity price, par plus commodity strike return; exposure to any decline in strike commodity price
|
| Commodity strike return: | (i) final price minus strike commodity price divided by (ii) strike commodity price
|
| Initial price: | $69.00
|
| Strike commodity price: | $73.623, 106.7% of the initial price
|
| Pricing date: | Dec. 1
|
| Settlement date: | Dec. 4
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 0.75%
|
| Cusip: | 61762GCQ5
|
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