New York, Sept. 9 – Morgan Stanley priced $8,624,850 of contingent income auto-callable securities due Sept. 11, 2017 linked to Bank of America Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
If Bank of America stock closes at or above the downside threshold level of $12.816 on a quarterly determination date, the notes will pay a contingent payment of 8.7% for that quarter.
If Bank of America stock closes at or above its redemption level on any of the quarterly determination dates, the notes will be redeemed at par plus the contingent payment.
The redemption level will be 105% of the initial share price for the first four determination dates, stepping up to 110% of the initial share price for the next four determination dates and to 115% of the initial share price for the final three determination dates.
If the Bank of America stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment.
Otherwise, investors will be fully exposed to any losses.
The agent is Morgan Stanley & Co. LLC.
| Issuer: | Morgan Stanley
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| Issue: | Contingent income auto-callable securities
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| Underlying index: | Bank of America Corp.
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| Amount: | $8,624,850
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| Maturity: | Sept. 11, 2017
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| Contingent payment: | 8.7% for quarter if Bank of America stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if Bank of America stock finishes at or above downside threshold; otherwise full exposure to any losses
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| Call: | At par plus contingent payment if Bank of America stock closes at or above redemption level on any determination date; redemption level will be 105% of the initial share price for the first four determination dates, stepping up to 110% of the initial share price for the next four determination dates and to 115% of the initial share price for the final three determination dates
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| Initial share price: | $16.02
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| Trigger level: | $12.816, 80% of initial price
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| Pricing date: | Sept. 5
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| Settlement date: | Sept. 10
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| Agents: | Morgan Stanley & Co. LLC
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| Fees: | 2%
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| Cusip: | 61758S641
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