By Marisa Wong
Madison, Wis., March 28 - Morgan Stanley priced $2.37 million of 0% trigger phoenix autocallable optimization securities due March 29, 2018 linked to the S&P 500 index and the Euro Stoxx 50 index, according to a 424B filing with the Securities and Exchange Commission.
If both indexes close at or above the 64.85% trigger level on any quarterly observation date, the notes will pay a contingent coupon of 8% for that quarter.
If both indexes close at or above the initial level on any quarterly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless either index finishes below the trigger level, in which case investors will be fully exposed to the decline of the least-performing index.
Morgan Stanley & Co. LLC is the agent, and UBS Financial Services Inc. is the dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | S&P 500 and Euro Stoxx 50
|
| Amount: | $2,373,000
|
| Maturity: | March 29, 2018
|
| Coupon: | 8% per year, payable quarterly if index closes at or above trigger level on observation date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if index finishes at or above trigger level; otherwise, par plus return of least-performing index
|
| Call: | At par plus contingent coupon if indexes close at or above initial levels on quarterly observation date beginning March 24, 2014
|
| Initial levels: | 1,563.77 for S&P 500 and 2,641.12 for Euro Stoxx
|
| Trigger levels: | 1,014.10 for S&P 500 and 1,712.77 for Euro Stoxx; 64.85% of initial levels
|
| Pricing date: | March 26
|
| Settlement date: | March 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Dealer: | UBS Financial Services Inc.
|
| Fees: | 2.5%
|
| Cusip: | 61761M797
|
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