New Issue: Morgan Stanley prices $2.59 million contingent income autocallables on Under Armour

By Marisa Wong

Madison, Wis., April 11 - Morgan Stanley priced $2.59 million of contingent income autocallable securities due March 30, 2017 linked to the common stock of Under Armour, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If Under Armour shares close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon that quarter at an annualized rate of 9%.

The notes will be called at par of $10 plus the contingent coupon if Under Armour shares close at or above the redemption threshold level on any of the first 11 quarterly determination dates. The redemption threshold level is 95% of the initial share price for the first through fourth determination dates, 90% of the initial share price for the fifth through eighth determination dates and 85% of the initial share price for the ninth through 11th determination dates.

If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, the payout will be a number of Under Armour shares equal to $10 divided by the initial share price or, at the issuer's option, an amount in cash equal to the value of those shares.

Morgan Stanley & Co. LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Contingent income autocallable securities
Underlying stock:	Under Armour, Inc. (Symbol: UA)
Amount:	$2,588,000
Maturity:	March 30, 2017
Coupon:	9% per year, payable quarterly if closing price is at least 75% of initial price on quarterly determination date; otherwise, none
Price:	Par
Payout at maturity:	If final share price is at least 75% of initial price, par plus contingent payment; otherwise, 0.09206 Under Armour shares
Call:	At par plus contingent coupon if stock closes at or above redemption threshold on any of first 11 determination dates
Initial price:	$108.63
Downside threshold:	$81.473, 75% of initial share price
Redemption thresholds:	$103.199, 95% of initial price, for first four determination dates; $97.767, 90% of initial price, for next four dates; $92.336, 85% of initial price, for last three dates
Pricing date:	April 9
Settlement date:	April 14
Agent:	Morgan Stanley & Co. LLC
Fees:	2.25%
Cusip:	61760S787

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.