By Susanna Moon
Chicago, Feb. 13 - Morgan Stanley priced $4.42 million of contingent income autocallable securities with step-up redemption level due Feb. 13, 2017 linked to Bank of America Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10% if the stock closes at or above its 80% barrier level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the redemption level on any of the first 11 determination dates.
The redemption level will be 105% of the initial level for the first four review dates, stepping up to 110% of the initial level for the next four review dates and to 115% of the initial level for the final three review dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 80% barrier level, in which case investors will receive a number of Bank of America shares equal to par of $10.00 divided by the initial share price.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Bank of America Corp. (Symbol: BAC)
|
| Amount: | $4,417,000
|
| Maturity: | Feb. 14, 2017
|
| Coupon: | 10% annualized for each quarter that shares close at or above barrier level on quarterly determination date
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below barrier level, in which case 0.59242 Bank of America shares
|
| Call: | At par plus contingent coupon if stock closes at or above redemption level on any of first 11 review dates; redemption level will be 105% of initial level for first four review dates, stepping up to 110% of initial level for next four review dates and to 115% of initial level for final three review dates
|
| Initial price: | $16.88
|
| Barrier price: | $13.504, or 80% of initial price
|
| Pricing date: | Feb. 11
|
| Settlement date: | Feb. 14
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.25%
|
| Cusip: | 61760S365
|
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