New Issue: Morgan Stanley prices R$5.57 million real-denominated notes linked to ETFs

By Angela McDaniels

Tacoma, Wash., July 13 - Morgan Stanley priced R$5.57 million of 0% Brazilian real-denominated notes due July 16, 2014 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the Market Vectors Brazil Small-Cap index fund with a 15% weight, the iShares MSCI South Korea index fund with a 15% weight, the iShares MSCI Taiwan index fund with a 12% weight, the iShares MSCI Brazil index fund with a 10% weight, the Market Vectors Indonesia index fund with a 10% weight, the iShares MSCI Malaysia index fund with an 8% weight, the iShares MSCI Singapore index fund with an 8% weight, the iShares MSCI South Africa index fund with an 8% weight, the iShares MSCI Mexico Investable Market index fund with a 7% weight and the iShares MSCI Turkey Investable Market index fund with a 7% weight.

The payout at maturity will be an amount in dollars equal to par converted at the exchange rate then in effect. Holders will also receive an additional amount equal to the USD principal amount - $633.0717, which equals R$1,000 converted at the initial exchange rate - multiplied by 150% of the basket return. The additional amount cannot be less than zero or greater than $541.2763.

J.P. Morgan Securities LLC is the agent.

Issuer:	Morgan Stanley
Issue:	Brazilian real-denominated notes
Underlying ETFs:	Market Vectors Brazil Small-Cap index fund (15% weight), iShares MSCI South Korea index fund (15% weight), iShares MSCI Taiwan index fund (12% weight), iShares MSCI Brazil index fund (10% weight), Market Vectors Indonesia index fund (10% weight), iShares MSCI Malaysia index fund (8% weight), iShares MSCI Singapore index fund (8% weight), iShares MSCI South Africa index fund (8% weight), iShares MSCI Mexico Investable Market index fund (7% weight), iShares MSCI Turkey Investable Market index fund (7% weight)
Amount:	R$5,568,000
Maturity:	July 16, 2014
Coupon:	0%
Price:	Par of R$1,000, or $633.0717
Payout at maturity:	Par, converted into dollars at the exchange rate then in effect, plus additional amount equal to $633.0717 multiplied by 150% of basket return; additional amount cannot be less than zero or greater than $541.2763
Initial exchange rate:	1.5796 reais per dollar
Pricing date:	July 11
Settlement date:	July 14
Agent:	J.P. Morgan Securities LLC
Fees:	2.6%, including 1% for selling concessions
Cusip:	48125XYL4

© 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.