By Marisa Wong
Madison, Wis., Dec. 3 - Morgan Stanley priced $8 million of contingent income autocallable securities with step-up redemption threshold level feature due Nov. 27, 2015 linked to the common stock of United Technologies Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If United Technologies stock closes at or above the step-up threshold level on a quarterly determination date, the notes will pay a contingent quarterly payment of 2%. Otherwise, no payment will be made that quarter.
The threshold level is 105% of the initial price on the first four determination dates, 110% of the initial price on the next four determination dates and 115% of the initial price on the ninth through 11th determination dates.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the final share price is less than the downside threshold level, in which case the payout will be a number of United Technologies shares equal to $10.00 divided by the initial share price or, at Morgan Stanley's option, the cash equivalent.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities with step-up redemption threshold level feature
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| Underlying stock: | United Technologies Corp. (Symbol: UTX)
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| Amount: | $8 million
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| Maturity: | Nov. 27, 2015
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| Coupon: | 2% contingent quarterly payment if United Technologies stock closes at or above step-up threshold level on a quarterly determination date; otherwise no contingent payment that quarter; threshold level is 105% of initial price on first four determination dates, 110% of initial price on next four determination dates and 115% of initial price on ninth through 11th determination dates
|
| Price: | Par of $10
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| Payout at maturity: | Par plus contingent payment unless final share price is less than downside threshold level, in which case 0.12538 United Technologies shares or cash equivalent
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| Call: | At par plus contingent payment if stock closes at or above initial share price on any of first 11 quarterly determination dates
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| Initial price: | $79.76
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| Downside threshold: | $59.82, 75% of initial price
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| Pricing date: | Nov. 29
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| Settlement date: | Dec. 4
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 2.25%
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| Cusip: | 61761H400
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