By Marisa Wong
Madison, Wis., July 28 - Morgan Stanley priced $3.18 million of 0% Commodity Leading Stockmarket Return Securities due Jan. 31, 2012 based on the performance of gold, according to an FWP filing with the Securities and Exchange Commission.
If the price of gold remains above 80% of the initial price throughout the life of the notes, the payout at maturity will be par of $1,000 plus the greater of the gold return and a fixed percentage of 10%.
If the price of gold falls to or below 80% of the initial price during the life of the notes, the payout will be par plus the gold return, which could be positive or negative.
In either case, the maximum payout at maturity will be $1,220 per security.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Commodity Leading Stockmarket Return Securities
|
| Underlying commodity: | Gold
|
| Amount: | $3,176,000
|
| Maturity: | Jan. 31, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If gold price never falls by 20% or more, par plus greater of gold return and 10%; otherwise, par plus gold return, with exposure to losses; cap of 22% in either case
|
| Initial gold price: | $1,183.50
|
| Pricing date: | July 26
|
| Settlement date: | July 29
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2%
|
| Cusip: | 617482MU5
|
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