Published on 5/7/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $7.51 million autocallable quarterly review notes linked to palladium
By Angela McDaniels
Tacoma, Wash., May 7 - Morgan Stanley priced $7.51 million of 0% autocallable quarterly review notes due May 8, 2014 linked to palladium, according to a 424B2 filing with the Securities and Exchange Commission.
On any quarterly review date, if the settlement price of palladium is greater than or equal to the initial palladium price, the notes will be automatically called at par plus a call premium of 3.7% for the first review date, 7.4% for the second review date and 11.1% for the third review date.
If the final price of palladium is greater than or equal to the initial palladium price, the payout at maturity will be par plus 14.8%. If the price declines by up to 20%, the payout will be par. Otherwise, investors will lose 1% for every 1% that the final price is less than the initial price.
Morgan Stanley & Co. LLC is the agent with J.P. Morgan Securities LLC as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Autocallable quarterly review notes
|
| Underlying commodity: | Palladium
|
| Amount: | $7,505,000
|
| Maturity: | May 8, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final price of palladium is greater than or equal to initial palladium price, par plus 14.8%; if price declines by up to 20%, par; otherwise, 1% loss for every 1% that final price is less than initial price
|
| Call: | Automatically if settlement price of palladium is greater than or equal to initial palladium price on any review date; redemption amount will be 103.7 if notes are called on Aug. 5, 2013, 107.4 if called on Nov. 5, 2013 or 111.1 if called on Feb. 5, 2014
|
| Initial commodity price: | $694.00
|
| Pricing date: | May 3
|
| Settlement date: | May 8
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 6174824L5
|
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