By Wendy Van Sickle
Columbus, Ohio, Aug. 5 – Morgan Stanley priced $100,000 of phoenix autocallable securities due Aug. 18, 2017 linked to the common stock of Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Delta Air stock closes at or above the downside threshold – 75% of the initial share price – on a quarterly observation date, the issuer will pay a contingent coupon for that quarter at annual the rate of 16.1%. Otherwise, no coupon will be paid that quarter.
If the shares close at or above the initial price on a quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Delta Air shares finish at or above the downside threshold, 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 with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA handling distribution.
| Issuer: | Morgan Stanley
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| Issue: | Phoenix autocallable securities
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| Underlying stock: | Delta Air Lines, Inc. (NYSE: DAL)
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| Amount: | $2,694,000
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| Maturity: | Aug. 18, 2017
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| Coupon: | 16.1%, payable quarterly if stock closes at or above trigger price on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if Delta Air shares finish at or above downside threshold; otherwise, full exposure to decline
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| Call: | Automatically at par plus contingent coupon if Delta Air shares close at or above initial price on a quarterly observation date
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| Initial share price: | $36.39
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| Trigger price: | $27.293, 75% of initial price
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| Pricing date: | Aug. 2
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| Settlement date: | Aug. 5
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| Underwriter: | Morgan Stanley & Co. LLC with J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA handling distribution
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| Fees: | 1%
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| Cusip: | 61761J3M9
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