By Angela McDaniels
Tacoma, Wash., Jan. 27 - Morgan Stanley priced $43 million of contingent income autocallable securities due Jan. 25, 2013 linked to the common stock of Bank of America Corp., according to an FWP filing with the Securities and Exchange Commission.
If Bank of America stock closes above the downside threshold level - 80% of the initial share price - on a quarterly determination date, investors will receive a contingent payment of $0.275 for each $10.00 note. Otherwise, no contingent payment will be made for that quarter.
If the closing share price is greater than the initial share price on any quarterly determination date, 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 the downside threshold level, the payout at maturity will be par plus the contingent payment. If the final share price is less than or equal to the downside threshold level, the payout will be par plus the stock return.
Morgan Stanley & Co. Inc. is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Bank of America Corp. (NYSE: BAC)
|
| Amount: | $43 million
|
| Maturity: | Jan. 25, 2013
|
| Coupon: | If Bank of America stock closes above downside threshold level on a quarterly determination date, $0.275 per note; otherwise, none for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than downside threshold level, par plus $0.275; otherwise, par plus stock return
|
| Call: | Automatically at par plus $0.275 if stock closes above initial share price on any quarterly determination date
|
| Initial share price: | $13.63
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| Downside threshold price: | $10.904, 80% of initial price
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| Pricing date: | Jan. 25
|
| Settlement date: | Jan. 28
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| Agent: | Morgan Stanley & Co. Inc.
|
| Fees: | 2%
|
| Cusip: | 61759G190
|
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