Published on 2/22/2008 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $7.83 million review notes linked to S&P 500 Financials via JPMorgan
By Jennifer Chiou
New York, Feb. 22 - Morgan Stanley priced a $7.83 million issue of 0% review notes due March 4, 2010 linked to the S&P 500 Financials index via JPMorgan Chase Bank, NA and J.P. Morgan Securities Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at increasing premiums if the level of the index is greater than or equal to the call level on any of three review dates. On all review dates, the call level will be equal to the initial level.
The redemption amount will be par plus 17.55% if the notes are called on Feb. 27, 2009, par plus 26.325% if called on Aug. 27, 2009 and par plus 35.1% if called on March 1, 2010.
If the notes are not called, the payout at maturity will be par unless the index declines by more than 10%. Investors will lose 1.1111% for every 1% decline in the index beyond 10%.
| Issuer: | Morgan Stanley
|
| Issue: | Review notes
|
| Underlying index: | S&P 500 Financials
|
| Amount: | $7,828,000
|
| Maturity: | March 4, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | Automatically called if index level is at or above the call level on a review date; payout will be par plus 17.55% if called on Feb. 27, 2009, par plus 26.325% if called on Aug. 27, 2009 and par plus 35.1% if called on March 1, 2010; call level is 100% of initial index level on all review dates
|
| Payout at maturity: | Par unless the index declines by more than 10%, in which case investors will lose 1.1111% for every 1% decline beyond 10%
|
| Initial index level: | 362.11
|
| Pricing date: | Feb. 20
|
| Settlement date: | Feb. 25
|
| Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities Inc.
|
| Fees: | 1.5%
|
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