By Toni Weeks
San Diego, April 18 - Morgan Stanley priced $32.56 million of contingent income autocallable securities due April 20, 2015 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Apple stock closes above the downside threshold level - 75% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.325 for each $10.00 note. Otherwise, no contingent payment will be made for that period.
If the closing share price is greater than the initial share price on any of the first 11 quarterly determination dates, the notes will be automatically redeemed at par plus the contingent payment.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than the downside threshold level, the payout will be a number of Apple shares equal to the principal amount of notes divided by the initial share price or, at Morgan Stanley's option, the cash value of those shares.
Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Smith Barney LLC will handle distribution.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $32,559,210
|
| Maturity: | April 20, 2015
|
| Coupon: | 3.25% if closing price is at least 75% of initial price on quarterly determination date; otherwise, none
|
| Price: | Par
|
| Payout at maturity: | If final share price is at least 75% of initial, par plus contingent quarterly payment; otherwise, 0.01722 Apple shares per $10.00 principal amount, or, at Morgan Stanley's option, equivalent cash amount of those shares
|
| Initial price: | $580.68
|
| Threshold level: | $435.51, 75% of initial share price
|
| Call: | Par plus contingent payment if closing share price greater than initial share price on first 11 quarterly determination dates
|
| Pricing date: | April 16
|
| Settlement date: | April 20
|
| Agent: | Morgan Stanley & Co. LLC, with Morgan Stanley Smith Barney LLC as distributor
|
| Fees: | 2.25%
|
| Cusip: | 61760T744
|
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