By Angela McDaniels
Tacoma, Wash., Aug. 26 - Morgan Stanley priced $7.98 million of capital-protected units due Nov. 29, 2011 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.
The basket includes the Dow Jones Euro Stoxx 50, Nikkei 225 and S&P 500 indexes, equally weighted.
Each $10.00 unit consists of a zero-coupon note with a face amount of $10.00 and a call warrant. The payout at maturity will be the face amount of the note plus the cash settlement amount for the call warrant, which will be $10.00 multiplied by the basket return. The cash settlement amount has a floor of $0.00 and a cap of $4.70.
The units can be separated beginning Nov. 28. Once separated from the notes, the warrants can be exercised at any time. If a warrant is exercised before maturity, the basket return used to determine the cash settlement amount will be calculated using the indexes' levels on the day after the warrant is exercised.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Capital-protected units each consisting of a zero-coupon note and a call warrant
|
| Underlying indexes: | Dow Jones Euro Stoxx 50, Nikkei 225 and S&P 500, equally weighted
|
| Amount: | $7.98 million
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| Maturity: | Nov. 29, 2011
|
| Coupon: | 0%
|
| Price: | $10.00
|
| Payout at maturity: | $10.00 plus the cash settlement amount, which will be $10.00 multiplied by the basket return; cash settlement amount has a floor of $0.00 and a cap of $4.70
|
| Call warrants: | May be exercised for the cash settlement amount prior to maturity if first separated from the zero-coupon notes
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| Initial index levels: | 3,280.41 for Euro Stoxx; 12,878.66 for Nikkei; 1,292.2 for S&P 500
|
| Pricing date: | Aug. 22
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| Settlement date: | Aug. 29
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| Agent: | Morgan Stanley & Co. Inc.
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| Fees: | 2%
|
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