By Toni Weeks
San Luis Obispo, Calif., Sept 8 – Morgan Stanley priced $4.17 million of 0% participation securities due March 9, 2017 linked to the Morgan Stanley SmartInvest Equity Index (Price Return), according to a 424B2 filing with the Securities and Exchange Commission.
The index is a quantitative, rules-based, long-only equity index that aims to invest, at any one time, in 40 stocks included in the S&P 500 index that are among the more concentrated held by hedge funds, as reported on their forms 13F.
If the final index level is greater than the strike index value, 101.95% of the initial index level, the payout at maturity will be par plus the product of $10 and the index strike return.
If the final index level is less than or equal to the strike index value but greater than or equal to the initial level, the payout will be par.
Investors will participate in any decline in the index from the initial level.
Morgan Stanley & Co. LLC is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Participation securities
|
| Underlying index: | Morgan Stanley SmartInvest Equity Index (Price Return)
|
| Amount: | $4,169,000
|
| Maturity: | March 9, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final index level is greater than 101.95% of par, par plus product of $10 and index strike return; par if index finishes at or below strike index value but greater than or equal to initial level; full exposure to any losses
|
| Initial level: | 5,183.29
|
| Strike level: | 5,284.364, 101.95% of initial level
|
| Pricing date: | Sept. 4
|
| Settlement date: | Sept. 9
|
| Agent: | Morgan Stanley & Co. LLC with Morgan Stanley Wealth Management as dealer
|
| Fees: | 1.75%
|
| Cusip: | 61758S708
|
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