Published on 8/27/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $3.03 million contingent income autocallables on two indexes
By Marisa Wong
Madison, Wis., Aug. 27 - Morgan Stanley priced $3.03 million of contingent income autocallable securities due Aug. 28, 2018 linked to the worst performing of the Nikkei 225 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.
If each index closes at or above its coupon barrier level, 70% of its initial index level, on a quarterly determination date, investors will receive a contingent coupon of 7% per year that quarter.
Beginning one year after issuance, the notes will be automatically redeemed at par plus the contingent coupon if both indexes close at or above their initial levels on any quarterly redemption determination date.
If the notes are not called and each index finishes at or above the 70% downside threshold level, the payout at maturity will be par plus the final contingent coupon. If either index finishes below the trigger level, investors will be fully exposed to the decline of the worst-performing index from its initial level.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Nikkei 225 and Euro Stoxx 50
|
| Amount: | $3,025,000
|
| Maturity: | Aug. 28, 2018
|
| Coupon: | 7% per year, payable quarterly if each index closes at or above its coupon barrier level on a quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if either index finishes below trigger level, full exposure to decline of worst-performing index from its initial level
|
| Call: | After one year, at par plus contingent coupon if both indexes close at or above their initial levels on any quarterly redemption determination date
|
| Initial levels: | 13,660.55 for Nikkei, 2,826.05 for Euro Stoxx
|
| Barrier/downside threshold levels: | 9,562.385 for Nikkei, 1,978.235 for Euro Stoxx; 70% of initial levels
|
| Pricing date: | Aug. 23
|
| Settlement date: | Aug. 28
|
| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3%
|
| Cusip: | 61761JKS7
|
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