By Toni Weeks
San Diego, Dec. 27 - Morgan Stanley priced $25.8 million of Equity LinKed Securities due June 25, 2012 linked to the common stock of Cummins Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes will carry a coupon of 11% per year. Interest will be payable monthly.
The payout at maturity will be par of $10 unless the final price of Cummins stock is 75% or less of the initial share price, in which case the payout will be a number of Cummins shares equal to $10 divided by the initial share price or, at Morgan Stanley's option, an amount in cash equal to the value of those shares.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Smith Barney LLC as distributor.
| Issuer: | Morgan Stanley
|
| Issue: | Equity LinKed Securities (ELKS)
|
| Underlying stock: | Cummins Inc. (Symbol: CMI)
|
| Amount: | $25.8 million
|
| Maturity: | June 25, 2012
|
| Coupon: | 11%, payable monthly
|
| Price: | Par of $10
|
| Payout at maturity: | If Cummins stock falls to or below the downside threshold price during life of notes, 0.11344 Cummins shares or equivalent value in cash; otherwise, par
|
| Initial share price: | $88.15
|
| Threshold price: | $66.1125, 75% of initial
|
| Pricing date: | Dec. 22
|
| Settlement date: | Dec. 28
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Smith Barney LLC as distributor
|
| Fees: | 1.5%
|
| Cusip: | 61760T223
|
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