Published on 10/30/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $3 million contingent income autocallables on indexes, oil fund
By Toni Weeks
San Luis Obispo, Calif., Oct. 30 - Morgan Stanley priced $3 million of contingent income buffered autocallable securities due Oct. 31, 2018 linked to the worst performing of the Russell 2000 index, S&P 500 index and United States Oil Fund, LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at an annualized rate of 5% if each component closes at or above its 65% coupon barrier level on a monthly determination date.
If each component closes at or above its initial level on any quarterly call date after two years, the notes will be called at par plus the contingent coupon.
If the notes are not called and each component is greater than or equal to its 55% buffer level, the payout will be par plus the contingent coupon, if any. If any underlying component drops below the buffer level, investors will lose 3% for each 1% decline in the worst-performing component beyond the buffer.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income buffered autocallable securities
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| Underlying components: | Russell 2000 index, S&P 500 index and United States Oil Fund, LP
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| Amount: | $3 million
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| Maturity: | Oct. 31, 2018
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| Coupon: | 5% annualized for each month that each component closes at or above coupon barrier level on monthly determination date
|
| Price: | Par
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| Payout at maturity: | If each component finishes at or above buffer level, par plus the contingent coupon, if any; if any component drops below 55% buffer level, 3% loss for each 1% decline in worst-performing component beyond buffer
|
| Call: | At par plus contingent coupon if each component closes at or above initial level on any quarterly call date beginning October 2015
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| Initial levels: | 1,117.97 for Russell, 1,762.11 for S&P, $35.54 for oil ETF
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| Coupon barrier levels: | 726.681 for Russell, 1.145.372 for S&P, $23.101 for ETF, 65% of initial levels
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| Buffer amounts: | 614.884 for Russell, 969.161 for S&P, $19.547 for ETF, 55% of initial levels
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| Pricing date: | Oct. 28
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| Settlement date: | Oct. 31
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3%
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| Cusip: | 61761JMK2
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