By Angela McDaniels
Tacoma, Wash., May 6 - Morgan Stanley priced $1.45 million of phoenix autocallable securities due May 20, 2015 linked to the common stock of Cabot Oil & Gas Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Cabot Oil & Gas shares close at or above the downside threshold level, 75% of the initial share price, on a quarterly observation date, the notes will pay a contingent coupon at an annualized rate of 10.78% for that quarter.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial share price on Aug. 14, 2014, Nov. 13, 2014 or Feb. 21, 2015.
If the notes are not called and Cabot Oil & Gas shares finish at or above the downside threshold level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the share price decline.
Morgan Stanley & Co. LLC is the agent, and J.P. Morgan Securities LLC is dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Phoenix autocallable securities
|
| Underlying stock: | Cabot Oil & Gas Corp. (Symbol: COG)
|
| Amount: | $1.45 million
|
| Maturity: | May 20, 2015
|
| Coupon: | 10.78% per year, payable quarterly if shares close at or above downside threshold level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Cabot Oil & Gas shares finish at or above downside threshold level; otherwise, 1% loss for every 1% that shares decline from initial price
|
| Call: | Automatically at par plus contingent coupon if Cabot Oil & Gas shares close at or above initial price on Aug. 14, 2014, Nov. 13, 2014 or Feb. 21, 2015
|
| Initial share price: | $38.78
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| Downside threshold: | $29.085, 75% of initial share price
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| Final share price: | Average of closing share prices on five trading days ending May 15, 2015
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| Pricing date: | May 2
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| Settlement date: | May 7
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | J.P. Morgan Securities LLC
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| Fees: | 1%
|
| Cusip: | 61761JQN2
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