Published on 5/26/2011 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.66 million contingent interest notes linked to 20 stocks
By Jennifer Chiou
New York, May 26 - Morgan Stanley priced $1.66 million of contingent annual interest notes due May 27, 2016 linked a basket of common stocks, according to an FWP with the Securities and Exchange Commission.
The basket includes equal weights of Abbott Laboratories, Altria Group, Inc., Bristol-Myers Squibb Co., CenturyLink, Inc., Consolidated Edison, Inc., Duke Energy Corp., FirstEnergy Corp., Frontier Communications Corp., Johnson & Johnson, Kraft Foods Inc., Lockheed Martin Corp., McDonald's Corp., Merck & Co., Inc., Pepco Holdings, Inc., Pfizer Inc., Pitney Bowes Inc., PPL Corp., Sysco Corp., TECO Energy, Inc. and Verizon Communications Inc.
The notes will pay a coupon in May of each year equal to the sum of the weighted performances of the basket stocks, subject to a minimum coupon of zero.
If a basket stock's return is flat or positive, its performance will be fixed at 11.5%. If its return is negative, its performance will be the greater of the stock return and negative 20%.
The payout at maturity will be par plus the final coupon.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent annual interest notes
|
| Underlying stocks: | Abbott Laboratories (NYSE: ABT), Altria Group, Inc. (NYSE: MO), Bristol-Myers Squibb Co. (NYSE: BMY), CenturyLink, Inc. (NYSE: CTL), Consolidated Edison, Inc. (NYSE: ED), Duke Energy Corp. (NYSE: DUK), FirstEnergy Corp. (NYSE: FE), Frontier Communications Corp. (NYSE: FTR), Johnson & Johnson (NYSE: JNJ), Kraft Foods Inc. (NYSE: KFT), Lockheed Martin Corp. (NYSE: LMT), McDonald's Corp. (NYSE: MCD), Merck & Co., Inc. (NYSE: MRK), Pepco Holdings, Inc. (NYSE: POM), Pfizer Inc. (NYSE: PFE), Pitney Bowes Inc. (NYSE: PBI), PPL Corp. (NYSE: PPL), Sysco Corp. (NYSE: SYY), TECO Energy, Inc. (NYSE: TE) and Verizon Communications Inc. (NYSE: VZ), equally weighted
|
| Amount: | $1,658,000
|
| Maturity: | May 27, 2016
|
| Coupon: | Equal to sum of weighted performances of basket stocks, subject to minimum of zero; payable annually
|
| Stock performance: | If a basket stock's return is flat or positive, 11.5%; if its return is negative, greater of stock return and negative 20%
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon
|
| Pricing date: | May 24
|
| Settlement date: | May 27
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 3.5%
|
| Cusip: | 617482TR5
|
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