Published on 7/2/2015 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.29 million autocallables linked to energy ETF
By Angela McDaniels
Tacoma, Wash., July 2 – Morgan Stanley priced $1.29 million of 0% autocallable securities due July 5, 2018 linked to the Energy Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.
If the ETF’s closing share price on Dec. 29, 2016 is greater than or equal to the call threshold level, 120% of the initial share price, the notes will be automatically called at par of $10 plus 20%.
If the notes are not called and the final share price is greater than the initial share price, the payout at maturity will be par plus 135% of the ETF return. If the final share price is less than or equal to the initial share price but is greater than or equal to the trigger level, 85% of the initial share price, the payout will be par. If the final share price is less than the trigger level, investors will be fully exposed to the ETF’s decline.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Autocallable securities
|
| Underlying ETF: | Energy Select Sector SPDR fund
|
| Amount: | $1,289,330
|
| Maturity: | July 5, 2018
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than initial share price, plus 135% of ETF return; if final share price is less than or equal to initial share price but is greater than or equal to trigger level, par; if final share price is less than trigger level, full exposure to ETF’s decline
|
| Call: | Automatically at par plus 20% if ETF closes at or above call threshold level on Dec. 29, 2016
|
| Initial share price: | $75.16
|
| Trigger level: | $63.886, 85% of initial level
|
| Call threshold level: | $90.192, 120% of initial level
|
| Pricing date: | June 30
|
| Settlement date: | July 6
|
| Underwriter: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61765G317
|
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