New Issue: Morgan Stanley prices $3.75 million outperformance notes tied to Nasdaq 100, S&P 500

By Angela McDaniels

Tacoma, Wash., Aug. 25 - Morgan Stanley priced $3.75 million of 0% outperformance securities due Feb. 28, 2011 linked to the performance of the Nasdaq 100 index relative to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus triple the difference between the return on the Nasdaq 100 and the return on the S&P 500. If the S&P 500 outperforms the Nasdaq 100, that difference will be negative and investors will receive less than par.

The payout has a floor of 50% of par and a cap of 118% of par.

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Outperformance securities
Underlying indexes:	Nasdaq 100 and S&P 500
Amount:	$3.75 million
Maturity:	Feb. 28, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus triple the difference between the Nasdaq 100's return and the S&P 500's return, subject to a floor of $500 and a cap of $1,180 per note
Initial index levels:	1,634.78 for Nasdaq 100; 1,025.57 for S&P 500
Pricing date:	Aug. 24
Settlement date:	Aug. 31
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.5%

© 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.