By Marisa Wong
Madison, Wis., March 27 - Morgan Stanley priced $5 million of 0% trigger return optimization securities due March 31, 2016 linked to a basket of funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the SPDR S&P 500 ETF trust with a 40% weight, the iShares MSCI EAFE index fund with a 40% weight and the iShares MSCI Emerging Markets index fund with a 20% weight.
The payout at maturity will be par plus 1.5 times any basket gain, up to a maximum return of 38.18%.
If the basket finishes at or above the 75% trigger level, the payout will be par.
Otherwise, investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent with UBS Financial Services Inc. as dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger return optimization securities
|
| Underlying basket: | SPDR S&P 500 ETF Trust (40% weight), iShares MSCI EAFE index fund (40% weight) and the iShares MSCI Emerging Markets index fund (20% weight)
|
| Amount: | $5,004,660
|
| Maturity: | March 31, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 150% of any basket gain, capped at 38.18%; par if basket falls by up to 25%; full exposure to any losses if basket finishes below trigger level
|
| Trigger level: | 75% of initial level
|
| Pricing date: | March 25
|
| Settlement date: | March 28
|
| Agent: | Morgan Stanley & Co. LLC with UBS Financial Services Inc. as dealer
|
| Fees: | 2.5%
|
| Cusip: | 61761M649
|
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