By Angela McDaniels
Tacoma, Wash., Aug. 22 - Morgan Stanley priced $1.91 million of contingent income autocallable securities due Aug. 23, 2012 linked to the performance of Brent blend crude oil, according to a 424B2 filing with the Securities and Exchange Commission.
If the price of Brent blend crude oil is greater than or equal to the downside threshold level - 80% of the initial price - on a quarterly determination date, investors will receive a contingent payment of $40 for each $1,000 note. Otherwise, no contingent payment will be made for that quarter. The determination dates are Nov. 18, Feb. 20, May 18, 2012 and Aug. 20, 2012.
If the commodity price is greater than or equal to the initial price on any of the first three quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final commodity price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final price is less than the downside threshold level, the payout will be par plus the commodity return.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying commodity: | Brent blend crude oil
|
| Amount: | $1,906,000
|
| Maturity: | Aug. 23, 2012
|
| Contingent payment: | $40 per quarter payable only if oil price is greater than or equal to downside threshold price on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final oil price is greater than or equal to downside threshold level, par plus $40; otherwise, par plus commodity return
|
| Call: | Automatically at par plus $40 if oil price is greater than or equal to initial price on any quarterly determination date
|
| Initial oil price: | $106.99
|
| Downside threshold level: | $85.592, 80% of initial price
|
| Pricing date: | Aug. 18
|
| Settlement date: | Aug. 23
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 1.5%
|
| Cusip: | 617482VS0
|
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