By Susanna Moon
Chicago, Aug. 20 – Morgan Stanley priced $6.11 million of trigger phoenix autocallable optimization securities due Aug. 21, 2019 linked to Genworth Financial, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Genworth stock closes at or above the coupon barrier – 65.15% of the initial share price – on a monthly observation date, the notes will pay a contingent coupon for that month at the rate of 8%.
If the shares close at or above the initial price on any monthly observation date after one year, the notes will be called at par plus the contingent coupon.
If the notes are not called and Genworth shares finish at or above the 65.15% trigger level, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is the dealer.
Issuer: | Morgan Stanley
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Issue: | Trigger phoenix autocallable optimization securities
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Underlying stock: | Genworth Financial, Inc. (Symbol: GNW)
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Amount: | $6,106,040
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Maturity: | Aug. 21, 2019
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Coupon: | 8% annualized, payable monthly if stock closes at or above coupon barrier on observation date for that month
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Price: | Par of $10.00
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Payout at maturity: | Par plus contingent coupon if Genworth shares finish at or above coupon barrier; par if shares finish below coupon barrier but at or above trigger price; otherwise, par plus stock return
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Call: | At par plus contingent coupon if Genworth shares close at or above initial price on any monthly observation date beginning Aug. 17, 2015
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Initial share price: | $13.41
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Barrier level: | $8.74, 65.15% of initial price
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Pricing date: | Aug. 15
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Settlement date: | Aug. 20
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Agent: | Morgan Stanley & Co. LLC with UBS Financial Services Inc. as dealer.
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Fees: | 2.5%
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Cusip: | 61758S401
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