Published on 3/27/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $768,000 lock-in buffered securities linked to Dow
By Angela McDaniels
Tacoma, Wash., March 27 - Morgan Stanley priced $768,000 of 0% lock-in buffered securities due March 28, 2018 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
A lock-in event will occur if the index's closing level is greater than 120% of the initial index level of any of five annual observation dates. The lock-in level will be 20% if the index level has increased by at least 20% but less than 30%, 30% if the index level has increased by at least 30% but less than 40%, 40% if the index level has increased by at least 40% but less than 50% and 50% if the index level has increased by at least 50%.
If a lock-in event occurs, the payout at maturity will be par plus the greater of the index return and the highest lock-in level achieved.
If no lock-in event occurs, the payout at maturity will be par plus any gain in the index. Investors will receive par if the index falls by up to 15% and will lose 1% for every 1% that it declines beyond 15%.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Lock-in buffered securities
|
| Underlying index: | Dow Jones industrial average
|
| Amount: | $768,000
|
| Maturity: | March 28, 2018
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If lock-in event occurs, par plus greater of index return and highest lock-in level achieved; if no lock-in event occurs, par plus any gain in index, par if index falls by up to 15% or 1% loss for every 1% that index declines beyond 15%
|
| Lock-in event: | Index's closing level is greater than 120% of initial index level on March 23, 2014, March 23, 2015, March 23, 2016, March 23, 2017 or March 23, 2018; lock-in level will be 20% if index level has increased by at least 20% but less than 30%, 30% if it has increased by at least 30% but less than 40%, 40% if it has increased by at least 40% but less than 50% and 50% if it has increased by at least 50%
|
| Initial index level: | 14,447.75
|
| Pricing date: | March 25
|
| Settlement date: | March 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JDT3
|
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