By Marisa Wong
Madison, Wis., May 29 – Morgan Stanley priced $1.51 million of contingent income autocallable securities due May 25, 2018 linked to the common stock of EOG Resources, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If EOG Resources shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 8%.
The notes will be called at par of $10 plus the contingent coupon if EOG Resources shares close at or above the initial share price on any of the first 11 quarterly determination dates.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of EOG Resources shares equal to $10 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | EOG Resources, Inc. (NYSE: EOG)
|
| Amount: | $1,512,200
|
| Maturity: | May 25, 2018
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| Contingent payment: | 8% per year, payable each quarter that EOG Resources stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if EOG Resources stock finishes at or above downside threshold; otherwise, 0.11079 shares or, at issuer’s option, cash equivalent
|
| Call: | At par plus contingent payment if EOG Resources stock closes at or above initial share price on any of first 11 determination dates
|
| Initial share price: | $90.26
|
| Downside threshold level: $72.208, 80% of initial price
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| Pricing date: | May 22
|
| Settlement date: | May 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 2.5%
|
| Cusip: | 61765G200
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