Published on 5/29/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $2.52 million contingent income autocallables on indexes, fund
By Jennifer Chiou
New York, May 29 - Morgan Stanley priced $2.52 million of contingent income autocallable securities due May 30, 2023 linked to the worst performing of the Russell 2000 index, the Euro Stoxx 50 index and units of the United States Oil Fund, LP, according to a 424B2 filing with the Securities and Exchange Commission.
If each underlying asset closes at or above its coupon barrier level, 65% of its initial level, on a monthly determination date, investors will receive a contingent coupon that month at the rate of 10% per year.
Beginning on May 29, 2015, the notes will be automatically redeemed at par plus the contingent coupon if each underlying asset closes at or above their initial levels on any quarterly redemption determination date.
If the notes are not called and each underlying asset finishes at or above its downside threshold level, 80% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If any underlying asset finishes below its downside threshold level, investors will be fully exposed to the decline of the worst-performing asset from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying assets: | Russell 2000, Euro Stoxx 50, United States Oil Fund, LP
|
| Amount: | $2.52 million
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| Maturity: | May 30, 2023
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| Coupon: | If each underlying asset closes at or above coupon barriers on monthly determination date, investors will receive contingent coupon that month at rate of 10% per year
|
| Price: | Par
|
| Payout at maturity: | If each underlying asset finishes at or above downside threshold level, par plus final contingent coupon, if any; if any underlying asset finishes below downside threshold level, full exposure to decline of worst-performing asset from initial level
|
| Call: | Beginning May 29, 2015, notes will be automatically redeemed at par plus contingent coupon if each underlying asset closes at or above initial levels on any quarterly redemption determination date
|
| Initial index levels: | 984.28 for Russell 2000, 2,776.78 for Euro Stoxx 50 and $33.54 for fund
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| Coupon barrier levels: | 639.782 for Russell 2000, 1,804.907 for Euro Stoxx 50 and $21.807 for fund; 65% of initial levels
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| Downside threshold: | 787.424 for Russell 2000, 2,221.424 for Euro Stoxx 50 and $26.832 for fund; 80% of initial levels
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| Pricing date: | May 23
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| Settlement date: | May 29
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 3%
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| Cusip: | 61761JGV5
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