By Angela McDaniels
Tacoma, Wash., Oct. 8 - Morgan Stanley priced $1.2 million of trigger phoenix autocallable optimization securities due Oct. 11, 2018 linked to the common stock of Coca-Cola Co., according to a 424B2 filing with the Securities and Exchange Commission.
If Coca-Cola stock closes at or above the trigger price, 76.36% of the initial share price, on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 6% per year. Otherwise, no coupon will be paid that month.
Beginning Oct. 6, 2014, the notes will be called at par of $10 plus the contingent coupon if Coca-Cola shares close at or above the initial price on a monthly observation date.
If the notes are not called and Coca-Cola shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
Morgan Stanley & Co. LLC is the agent. UBS Financial Services Inc. is acting as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Coca-Cola Co. (Symbol: KO)
|
| Amount: | $1,203,240
|
| Maturity: | Oct. 11, 2018
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| Coupon: | 6% per year, payable monthly if stock closes at or above trigger price on observation date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Coca-Cola shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Coca-Cola shares close at or above initial price on any monthly observation date beginning Oct. 6, 2014
|
| Initial share price: | $37.20
|
| Trigger price: | $28.41, 76.36% of initial share price
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| Pricing date: | Oct. 4
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| Settlement date: | Oct. 9
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
|
| Fees: | 2.5%
|
| Cusip: | 61762W299
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