Published on 9/27/2013 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $156,000 contingent income autocallables linked to indexes
By Angela McDaniels
Tacoma, Wash., Sept. 27 - Morgan Stanley priced $156,000 of contingent income autocallable step-up securities due Sept. 29, 2028 linked to the worst performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its coupon barrier level, 75% of its initial index level, on a monthly determination date, investors will receive a contingent coupon that month. The contingent coupon rate is initially 8% per year. It will step up to 10% per year on Sept. 29, 2018 and to 15% per year on Sept. 29, 2023.
Beginning five years 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 its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If either index finishes below its downside threshold 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 step-up securities
|
| Underlying indexes: | S&P 500 and Euro Stoxx 50
|
| Amount: | $156,000
|
| Maturity: | Sept. 29, 2028
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| Coupon: | If both indexes close at or above coupon barriers on monthly determination date, investors will receive contingent coupon that month; contingent coupon rate is 8% per year, stepping up to 10% per year on Sept. 29, 2018 and to 15% per year on Sept. 29, 2023
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon, if any; if either index finishes below downside threshold level, full exposure to decline of worst-performing index from initial level
|
| Call: | Beginning five years after issuance, notes will be automatically redeemed at par plus contingent coupon if both indexes close at or above initial levels on any quarterly redemption determination date
|
| Initial index levels: | 1,692.77 for S&P 500 and 2,927.35 for Euro Stoxx 50
|
| Coupon barrier levels: | 1,269.578 for S&P 500 and 2,195.513 for Euro Stoxx 50; 75% of initial levels
|
| Downside threshold: | 846.385 for S&P 500 and 1,463.675 for Euro Stoxx 50; 50% of initial levels
|
| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Agent: | Morgan Stanley & Co. LLC
|
| Fees: | 3.5%
|
| Cusip: | 61761JKZ1
|
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